"Buy the dip" sounds like smart investing — wait for prices to fall, then pounce. But 60 years of evidence reveals the strategy underperforms passive investing more than 60% of the time. Here's why waiting for the perfect moment costs more than it saves.
The relationship between active funds and volatility has long been debated, with fund managers claiming turbulent markets play to their strengths. 2025's Trump-driven chaos provided the perfect test case – yet 71% of active equity managers still underperformed passive benchmarks. Despite currency swings, sectoral rotations, and policy uncertainty, the 29% success rate barely budged from 2024's 28.8%. Academic evidence spanning 25 years confirms: volatility doesn't save active
TEBI
Aug 7, 202512 min read
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