The 4 stages of an economic cycle: (1) Expanding from a trough. (2) Peaking at the crest. (3) Descending (“contracting”) from the high point. (4) Hitting bottom and recovering, where the cycle begins anew.
Thinking about buying the dip? When talking about stocks or any financial asset, a dip is a drop in price. You might buy the dip if you think the price will soon bounce back up. But try not to catch a falling knife.