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Investors Defy Overvaluation Warnings, Aggressively Buy the Dip
12 Nov
Summary
- 67% of investors say markets are overvalued
- Investors are buying the dips in stocks like Nvidia, Meta, and Microsoft
- Investors tend to sell the rips in stocks like AMD, Apple, and Tesla
As of November 12th, 2025, a significant majority of investors, around 67%, believe the markets are overvalued. However, the actions of these investors tell a different story. According to the analysis, investors have been actively buying the dips in several major tech stocks, including Nvidia, Meta, and Microsoft.
For example, when Meta's stock price pulled back 15% after earnings, investors swooped in and bought the dip. A similar pattern was observed with Nvidia and Microsoft, where the stocks experienced pullbacks of at least 4-5% during the month of October, only to be met with heavy buying activity from investors.
On the flip side, investors have been using the rips in stocks like AMD, Apple, and Tesla as opportunities to trim their positions. AMD saw a 20% move in a single day, while Apple set a new all-time high during the month of October. Investors used these rallies to sell and take profits.
This "buy the dip, sell the rip" sentiment appears to be the dominant strategy among investors, despite the widespread belief that the market is overvalued. As long as this trend continues, the market may have more room to the upside, according to the analysis.
