Many investors like to buy the hottest products, such as medicine, photovoltaic, new energy vehicles, etc., when buying industry theme funds or industry ETF funds. You may still make money when you just bought it, but over time, the income is often not very good, and even there is a loss. Why?

The main reason is that the crowded places are too crowded. Once there are differences in the follow-up, the incremental funds can't keep up, the smart funds slip out first, and the funds behind them react one after another. If you don't choose the right path, it's easy to be trampled and fall.

Investors who bought at a high level were trapped in the mountains. Actually, think about it Why didn't anyone buy these plates when they were still lying on the floor a year or two ago? Is it safer to buy at that time?

These hot plates were ignored before, just like some procyclical plates that are ignored now. A little study of the fundamentals will reveal that in the process of economic recovery, some sectors will continue to rise and their performance will exceed expectations.

Especially for some pro-cyclical sectors, due to the low valuation in the past, there will be a process of valuation repair or even improvement in the future, which is an opportunity for Davis to double-click on performance and valuation.

But one thing, although these potential sectors with low valuation have opportunities, no one knows when they will rise, just as no one knows when the hot sectors with high valuation will fall, which is a truth.

But to be on the safe side, it is best not to be greedy when the plate is at a high level, and sell it in batches as soon as possible, regardless of how much it can rise in the future, because your chips are chased in at a high level, and when the plate starts to fall from the highest point, there is no time to run. So run early.