Part 5/7:
While there were instances (notably in the 2003 and 2009 market dips) where buying the dip demonstrated superior short-term performance, history shows that its effectiveness diminishes over extended periods. In a broader analysis from 1975 to 2014, DCA consistently outperformed the Buy the Dip approach, largely because holding off for the next dip can lead to missed opportunities, especially in a rising market.
Moreover, research from JP Morgan Asset Management indicates that missing just the ten best market days can result in halved overall returns from 1999 to 2018. This reinforces the notion that timing the market can be detrimental; you may wait too long for a dip that never comes, missing out on substantial returns during market rallies.