For most stocks, a low P/E ratio is a good thing, but Peter Lynch found that this is not the case for cyclical stocks. If the cyclical company's price-earnings ratio starts to become very low, then it indicates that they are close to the end of the climax, but the investors who are unaware of the facts still hold stocks because the company is operating well, earning a lot of money, and the financial report is good, but This situation will change soon, and the prophetic investors are already selling stocks. When people start to sell a lot of stocks, the stock price falls, and the price-earnings ratio declines. At this time, for the inexperienced novice investors, the price-earnings ratio shows a greater temptation. If they buy, they may have to pay for their misunderstanding. It’s a heavy price.