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US stocks are drawing buyers after a recent tumble, but some investors believe buying the dip this time may be a far riskier bet than in the past as markets face geopolitical strife and a hawkish Federal Reserve.
The benchmark S&P 500 (.SPX) has surged more than 6 per cent from Thursday's lows to close higher on the week, after investors swooped in following sharp declines on the heels of Russia's invasion of Ukraine.
On the surface, the swift rebound resembled past bounces the index has experienced in its more than 200 per cent run over the last decade, when "buying the dip" proved a winning strategy.