B2 – Upper Intermediate
Purchasing an asset when its price declines, often as a result of external events, is referred to as “buying the dip” in the context of investing. In expectation of a price recovery for that asset, investors then “buy the dip.”
People may tell you to “buy the dip” while the stock market is declining. Does it, however, make sense?
Watch the video about buying the dip.
Vocabulary Questions:
- How do you interpret the term “blue chip” in trading?
This is the last 12 months of a blue chip stock price. - What does the idiom “bang for the buck” mean?
Since the shares are essentially on sale, you get more bang for your buck. - Use the phrase “in hindsight” in a sentence.
Discussion Questions:
- How do you feel about investing in the stock market?
- If you are a trader, would you buy the dip?
- Which of the investing strategies mentioned in the video would you most likely employ if you were a stock market investor?