Buying the dip has been an effective strategy in 2025, rewarding traders who bought during sell-offs with the S&P 500 hitting record highs.
Despite market volatility, stocks like Tesla and Nvidia also saw successful recoveries after sharp declines, providing buying opportunities for investors.
Retail investors have played a significant role in dip-buying, capitalizing on market pullbacks and contributing to the market rally seen in the first half of 2025.
Positive geopolitical developments and factors like the TACO trade have further fueled the market's upward momentum, with stocks like Nvidia reaching record highs.