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What is the reason for the sharp drop in new energy?
The reason for the sharp drop in the new energy automobile sector is the profit-taking of funds. Because the new energy automobile sector is still in the rising cycle, there is no logical problem, so it is a short-term profit-taking of funds. New energy vehicles will be a huge market in the next few decades, so its logic is very strong, no doubt. If you want to buy a fund for new energy vehicles, then I think you can buy it boldly without worrying about long-term decline. 1. The reason for the plunge, even the best sector, will be profitable after reaching a very high level. Because most of the funds operated here are not long-term value investment funds, most of them are mainly band operations. If they reach a very high price in a short time, then they will reduce their positions appropriately or completely clear their positions. When the price is relatively low, they will re-enter the market and pull new energy vehicles to a new height again. Second, the logic of new energy vehicles is firm. New energy vehicles will completely replace traditional fuel vehicles in the future, so the logic of vehicles is very firm and the market space in the future is very large. With the technology of new energy vehicles becoming more and more mature, and with the popularization of new energy vehicles, the share prices of these stocks will also rise and their performance will get better and better in the future. Therefore, the logic of new energy vehicles is completely no problem. If you want to participate, there is no problem at all.