The phrase suggests an funding technique, particularly the apply of buying belongings after they’ve skilled a short lived value decline. This technique assumes that the worth will ultimately rebound, permitting the investor to revenue. For instance, if a inventory’s value drops, somebody using this technique would buy shares, anticipating a future value enhance.
The perceived profit lies in buying belongings at a decrease value, doubtlessly maximizing returns when the worth recovers. Traditionally, this tactic has been employed by buyers searching for to capitalize on market volatility, although its success relies upon closely on the accuracy of predicting a subsequent value restoration and the inherent threat tolerance of the person.
