A post on Reddit's r/stocks has struck a nerve with thousands of users as it challenged the common advice to “buy the dip.” The post, written by a retired investor, argues that while many Americans are indeed exposed to the market through their 401(k)s, that doesn't mean they have spare cash to buy more stocks during a downturn.
“A large swath of Americans DO have money in the stock market via 401(k)s,” the post read. “What they DO NOT have is a pile of cash lying around to buy stocks. Just stop. This is decimating millions of Americans.”
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“Buy the Dip”? With What Money?
The original post, which quickly racked up over 13,000 upvotes and almost 3,000 comments, criticized both online commentators and government officials for promoting the idea that falling stock prices represent an opportunity for average investors. Treasury and Commerce officials were singled out for comments encouraging Americans to invest more during the downturn.
The original poster, who said he moved most of his holdings into cash before the market crash, emphasized that he was speaking for working Americans who don't have that luxury. “They are trying to pay the mortgage and the car,” he wrote. “My point was, these folks are not rushing out to buy stocks like the Treasury and Commerce secretaries have suggested. It's ridiculous.”
Users Respond: This Isn’t a Normal Correction
Many in the thread echoed the sentiment, calling this downturn more than just a market correction. One user wrote, “Hence people calling this a massive wealth transfer and consolidation.” Another added, “If you can afford to crash the economy, you can afford to profit off the crash.”
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The frustration was compounded by the perception that the people who caused the crash won't suffer the consequences. “The people who crash the economy hardly ever suffer the brunt. Weird how that works out, huh?” one commenter posted.
Others pointed out the dangers for those nearing retirement. “It’s a tragedy for people retiring soon,” one user said. “Too young to retire, too old to find a job,” another added.
401(k) Holders Are Still Buying Automatically
Some commenters noted that, technically, 401(k) investors are still buying the dip through automatic paycheck deductions. But others pushed back, saying that misses the bigger point.
“Most people live paycheck to paycheck. Believe it or not, setting aside money for retirement is a status,” one wrote. “Setting up a monthly savings outside of retirement is rare in the real world.”
A user summed it up bluntly: “This only benefits the f***ing rich who can afford to lose a few million but have billions in cash to buy the dip and make more billions.”
Planning and Privilege
Some Redditors did say they had cash on hand and had been preparing for a downturn for months. But even they acknowledged that this kind of planning isn't realistic for most.
“We went 80% cash and bonds when the incompetent agent of chaos became President again because it WAS OBVIOUS something like this was going to happen,” one user wrote.
Another added, “Cheering the free fall is silly. A recession or depression isn't good. We've been overdue for a correction, but this still sucks for folks who are at retirement age.”
While there's always someone ready to frame a downturn as a buying opportunity, the Reddit thread was a reminder that this advice doesn't reflect the financial reality of most Americans. As the Redditor put it, “I was simply pointing out that the advice to ‘buy the dip’ is disingenuous.”
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