The first is to judge the relative position of the fund. We can look at PE and PB. The smaller these two values, the lower the valuation of the representative index, so the funds related to these indexes are also underestimated, indicating that they can enter the market.
If you buy a broad-based index, it is ok to look at PB or PE. If you buy an industry index, you should distinguish it according to the industry, such as medicine, consumption and other weak cycle industries with stable performance, mainly looking at PE. For steel, nonferrous metals and other industries with strong cycle, it mainly depends on PB percentile. The general index is over 80%, which is relatively high. It is recommended to wait and see. For example, the PE percentile of food and beverage is within the historical trading time, and the index is.
Many people want to buy funds at the bottom, but there is actually a very simple way to solve it. That is to use the fund's maximum exit index.
Looking at the maximum withdrawal data of a fund, the maximum withdrawal measures the worst possible situation of a fund, which is equivalent to a reference line. For example, the maximum withdrawal of a fund in the past three years, then when the future withdrawal of this fund exceeds, the high probability is the opportunity to bargain-hunting.
If you are very optimistic about a fund, you can also control the increase of positions according to the rhythm of maximum retracement. For example, if the decline rate reaches half of the historical maximum retracement, you can add 15%, then add 20%, and if the decline rate reaches the historical maximum retracement level, continue to add 25%.