Josh Brown: It’s Not Time to Buy the Dip

In an era where every market tremble triggers a chorus of “buy the dip,” one voice is pushing back against the herd mentality: Josh Brown, CEO of Ritholtz Wealth Management and a well-known market commentator, says now is not the time to blindly scoop up falling stocks.

Brown, known for his candid insights and level-headed takes on CNBC’s “Halftime Report” and his popular blog “The Reformed Broker,” recently made headlines with a sharp critique of the reflexive dip-buying strategy that has defined much of the post-2020 market.

“You’re not buying a dip in a bull market,” Brown said during a recent appearance. “You’re potentially catching a falling knife in a market that hasn’t fully re-rated yet.”

The New Market Regime

For much of the past decade, every pullback has been seen as a buying opportunity, thanks to ultra-low interest rates, abundant liquidity, and a Federal Reserve ready to backstop markets at the first sign of trouble. That regime is over.

“We're in a different environment now,” Brown explains. “Rates are higher, inflation is sticky, and the Fed isn’t your friend anymore.”

This shift has real consequences for valuation, risk appetite, and investor behavior. Growth stocks—particularly those with little or no earnings—are no longer floating effortlessly on a sea of cheap capital. And yet, the dip-buying muscle memory remains.

Fundamentals Over FOMO

What’s replaced Fed-driven rallies is a market that demands patience and a return to fundamentals. Brown warns against interpreting every 3% drop as a buying opportunity, especially when earnings expectations remain optimistic, consumer spending is cooling, and geopolitical risks are flaring.

“Buying the dip without understanding why there’s a dip is lazy investing,” he said. “This isn’t 2021. If you're not factoring in macro conditions, balance sheet strength, and pricing power, you're flying blind.”

In his view, this is a time for discipline, not dopamine hits from chasing bounces. Investors should focus on quality, cash flow, and valuation—hallmarks of traditional investing that had taken a backseat in the speculative frenzy of the last few years.

Risk Management Is Back

Brown isn’t calling for panic, nor is he suggesting investors should flee the market. Instead, he’s advocating a more tactical, informed approach: raise cash when appropriate, rotate into sectors with stronger fundamentals, and don't be afraid to wait.

“Sometimes the best trade is no trade,” he added. “Let the market show its hand. You don’t need to catch every bottom to build long-term wealth.”

The Bottom Line

Josh Brown’s message is clear: the days of mindless dip-buying are over. This market demands thoughtfulness, patience, and a healthy respect for risk.

Whether you're a retail investor riding the meme stock wave or a seasoned pro trying to navigate a shifting landscape, the takeaway is the same—investing isn't supposed to be easy. And in this environment, being cautious isn’t cowardice—it’s wisdom.

So before you “buy the dip,” ask yourself: is this an opportunity—or just another trap?