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Dip

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A dip in the market is a decline in prices, generally considered a temporary downturn. An individual stock or commodity can have a dip in prices, a sector can have a dip in prices, or the broader market can experience a temporary dip in prices. Some investors see a market dip as a buying opportunity. The increase in purchasing during a market dip is generally thought to be primarily responsible for restoring market prices. A dip can be caused by rumor or by fundamental or technical analysis, or a dip can be caused by a negative comment by a respected market analyst, or a market dip can be caused by political or other outside influences. No matter how strong a market may be fundamentally, virtually every market will experience a price dip from time to time.



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