“I don’t think we have seen enough of a pullback to warrant dip buying just yet,” said Edward Perkin, the chief equity investment officer who oversees $45 billion at Eaton Vance Management in Boston. “For investors with mandates to be fully invested, I favor non-U.S. stocks and quality cyclicals with strong balance sheets. For investors looking across all asset classes, keeping some dry powder in cash and waiting for more compelling opportunities probably makes sense.”

If and when the buy-the-dip cohort decides the declines have run far enough, there are reasons to expect a rebound.

For one thing, the S&P 500’s earning yield -- profit relative to share price -- is more than 3 percentage points higher than the 10-year yield, the highest since October and way above its historic average in a valuation method known as the Fed model. For some, that’s a signal the share index is poised to climb as investors take advantage.

“We believe it’s not time to start counterpunching, but expect value to be uncovered and opportunities to arise over the next several days and weeks,” Wells Fargo Securities LLC strategists including Christopher Harvey wrote in a note this week.

This article was provided by Bloomberg News.

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