Core Insights - The article discusses the risks associated with buying stocks at new lows, particularly in the technology sector, and emphasizes that beaten-down shares may not be as attractive as they appear [1] Group 1: Market Trends - Recent sell-offs in technology stocks, including companies like Adobe, Salesforce, Intuit, and Workday, have led to many trading around 52-week lows [1] - Analysts warn against the common strategy of "buying the dip," suggesting that stocks making new lows often continue to decline [1] Group 2: Academic Insights - Research from Erasmus University and Northern Trust indicates that stocks with positive price momentum tend to yield better returns, while those with weak momentum continue to underperform [1] - The study analyzed long-short stock portfolios from 1990 to 2024, showing that winners keep winning and losers keep losing [1] Group 3: Market Recovery Patterns - Deutsche Bank's macro strategist notes that the year has seen sharp sell-offs that often recover quickly, with no lasting damage inflicted on the market [1] - Historical patterns suggest that significant market downturns are typically associated with negative macroeconomic reassessments, which have not been observed recently [1]