There's a marked difference between a dip and a cliff. A dip, by definition, implies a continuation through a period of depressed price/earnings/some-metric. B

There's a marked difference between a dip and a cliff. A dip, by definition, implies a continuation through a period of depressed price/earnings/some-metric. Buying at the bottom of a dip is logical. A cliff implies a discontinuity. Almost nothing survives a fall of a cliff. Buying at the bottom of a cliff is therefore illogical. The key is identifying when something is heading for a dip or a cliff.