Dip Buyers Dominate: Best Payoff in Over 30 Years

​Buying the dip has never been this profitable in over three decades.

In 2025, the S&P 500 has averaged a 0.36% gain the day after a down session—marking the strongest post-selloff return since at least 1993. The only comparable year was 2020, which saw a 0.32% average bounce after losses.

This pattern played out again on Tuesday, when the index surged over 2% following a 0.7% dip the day before. The catalyst? President Trump stepping back from previously threatened tariffs—a recurring theme behind several rebound days this year.

Retail investors have been leading the charge. Since the market bottomed on April 8, they’ve funneled more than $50 billion into U.S. equities, even outpacing their activity during the 2020 COVID rebound. On April 3 alone, retail net purchases hit a single-day record of $3 billion.

The S&P 500 has climbed nearly 19% since early April, as the “buy the dip” strategy continues to deliver powerful results.

​Bottom line: Dip buying isn’t just back—it’s thriving. Whether the momentum lasts will depend on policy moves and investor sentiment, but for now, the market rewards patience and conviction.