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Is the Correction Over Yet? Buy the Dip!

5 October 2015 in Trading Ideas

Ever since the markets took a nosedive in August, the financial press has been awash with pundits making different calls about whether or when the market has hit bottom—even though the answer to that question has historically not become visible until after the fact.

While some have expressed optimism about whether this month might witness the trough before the rebound, others warn not to try to time the market.1

In the meantime, there’s no time like the present for our Buy the Dip motif. It has outperformed over the past month, with a 3.7 percent return, including a 4 percent dividend yield, compared to just 0.3 for the Standard & Poor’s 500. During the past 12 months, the motif had a return of negative 0.3 percent compared to a gain of 0.5 percent for the benchmark. However, the motif has also had more moderate volatility than the market benchmark.

That smoother ride and the past four weeks’ return inspired us to make Buy the Dip our Motif of the Week. That means you can trade it commission free today through October 9.

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1 Shell, Adam, “Wall Street Enters 4Q Wondering If Worst Is Over,” USA Today, October 1, 2015.

$0.00 commission offer is for trades (buys, sells, rebalances) of the benchmark version of the Motif of the Week. Commission-free buys, sells, and rebalances end 4PM ET October 9, 2015. Commissions for the Motif of the Week that is customized in any way – adjust weighting, add or remove securities will include a $9.95 total commission per motif transaction or pay $4.95 per stock for individual stock/ETF transactions. Regular commissions apply for other Motif-created benchmark motifs and customer-created customized motifs ($9.95 total commission per motif transaction or $4.95 per stock for individual stock/ETF transactions). Other fees may apply. Motif reserves the right to review and amend the commission pricing structure at any time in the future and will notify you in writing of any intended changes. For details on fees and commissions, please click here.

Performance of the Motif of the Week is for informational purposes only. Performance not based on results you could expect to achieve. See how we calculate returns. All stated performance returns are as of October 2, 2015.