The phrase suggests an funding technique, particularly the apply of buying property after they’ve skilled a brief value decline. This technique assumes that the value will finally 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 improve.
The perceived profit lies in buying property at a decrease value, probably maximizing returns when the value recovers. Traditionally, this tactic has been employed by traders looking 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.
