Wait for a 10% drop in the S&P 500 before buying the dip, Barclays says
u/PurpleReign123 ·
Reddit — r/StockMarket
· March 01, 2026 at 16:45
· ⬆ 545 pts
· 💬 132 comments
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Summary
The post shares advice from a Barclays analyst, Ajay Rajadhyaksha, who recommends against immediately buying market dips.
The author, u/PurpleReign123, agrees with the analyst, suggesting that waiting for a more significant pullback (e.g., 10% in the S&P 500) is a prudent strategy for retail investors to avoid providing exit liquidity for institutions.
Quality assessment: This is speculation and commentary on a professional analyst's opinion, not original due diligence (DD). It reflects a cautious market sentiment based on geopolitical risk.
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\*Investors should resist the urge to immediately buy any market weakness, he added. “History argues strongly in favor of selling geopolitical risk premium when hostilities start,” Rajadhyaksha said. But he cautioned that markets may be underpricing the chance that tensions fail to cool.\*
“\*We would recommend not buying any immediate dip – the risk-reward doesn’t seem compelling. If equities pull back enough (say over 10% in the S&P500), there is likely to come a time to buy. But not yet," Rajadhyaksha concluded sensible advice.
I know BTFD worked well … in the past. But this time, above seems like sensible advice for retail to avoid becoming exit liquidity for institutions.
A Barclays analyst advises against buying small dips, citing underpriced geopolitical risk and unfavorable risk-reward. This suggests that the market has further downside potential before it becomes an attractive entry point. Buying now could lead to near-term losses. The recommendation is to refrain from buying the S&P 500 at current levels and wait for a more substantial correction of over 10% before considering an entry. Geopolitical tensions could de-escalate unexpectedly, causing the market to rally. A "soft landing" or strong economic data could also prevent a significant pullback, leading to missed upside.
This Reddit post, published March 01, 2026,
features u/PurpleReign123
discussing SPY.
1 trade idea extracted by AI with direction and confidence scoring.