"In April of last year, I bought the dip. I timed the market perfectly, investing an unexpected cash windfall into the stock market at one of the lowest points in the year. I did not achieve this through brilliant technical analysis or financial forecasting. I achieved this by accident. I slipped on a golden banana peel. I had just received word from my accountant that my tax bill would be lower than we thought, so I felt confident investing some of the extra cash"
"By the time the request reached the bank and the cash arrived, it was Tuesday, April 8th, when the S&P 500 was down 11.4% for the year. That's when I bought, and the very next day, it shot up nine points. In investing, this is called "buying the dip" or correctly identifying a moment in a security's price where it's temporarily lower than the average of a certain period (in this case, the year). I just got lucky."
A purchase of VOO occurred on April 8 after an unexpected cash windfall and delayed bank processing, coinciding with an 11.4% year-to-date drop. The purchase was accidental rather than the result of technical analysis or forecasting. Buying during a temporary dip produced an immediate rebound the next day, illustrating luck can mimic successful market timing. An illustrative example compares investing $10,000 at the start of the year versus investing after a dip in April, showing how entry timing can alter short-term returns despite identical total investment. Waiting to buy dips often requires enduring worse outcomes.
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