If you are a novice investor, I don't particularly recommend that you blindly choose fund products in historically high valuation areas, because such fund products will have certain callback risks. If you buy at a high level, the retreat of the market will directly lead to the loss of your principal, which will greatly affect a person's investment mentality at this time, and then make you make a lot of moves to chase up and kill down, which is also an important reason for many novice investors to lose money.
First, you can understand historical high valuation as a bubble.
Let me give you an example. If the net value of the current fund product is 1, its actual value is also 1. When the market rises further, the fiery market will further drive this fund product. At this time, the value of the fund product has been equal to 2, indicating that the valuation of this fund product is too high. If the current No.2 is compared with the previous market, the actual value of this fund product is obviously inconsistent with the current valuation, which is what we often call overestimation.
Second, I don't recommend buying funds when they are overvalued.
Strictly speaking, all overvalued fund products and stocks have a certain bubble, and it is difficult for you to judge whether the bubble will last or whether it is at an all-time high. For many novice investors who have no news, when novice investors know to buy funds to make money, it basically means that the fund has reached its peak.
Third, you can also choose a small position to enter the market.
Although we all want to buy undervalued high-quality assets, the superior assets in the market are basically overvalued. If you are afraid of missing the market, you can enter the market with small funds to open positions. If there is an opportunity in the current market, you can first open a light warehouse and enter the market in this way, and then decide your position according to the later market.