The brokerage sector is a relatively typical cyclical sector. Before every bear market comes, the brokerage sector will become the outlet for market decline. Even if the performance is good, it cannot stop the continuous decline of stock prices; before the bull market comes, it will become the market excitement.

The output point of sentiment is often the first to rise sharply ahead of other sectors.

The brokerage sector seems to be predictive of the stock market. The main reasons why it can become the vanguard of the bull market are as follows.

There is a strong correlation between the performance of securities companies and the performance of the stock market. The performance of securities companies is directly related to the market conditions of the stock market. When the stock market prices rise, the market trend will attract market funds to enter the market, and the commission income of securities companies will therefore increase significantly.

Increase, performance will also increase significantly.

At the same time, the securities firm itself is also one of the main institutions in the market. In its self-operated business sector, there are many excellent analysts and fund managers who are more sensitive to market changes and can obtain advance information sources when the market occurs.

When opportunities arise, securities firms often become the first investors to make arrangements, and their performance in a bull market will be much better than usual.

There is no doubt that the performance of securities companies in the bull market is unparalleled, and the performance of listed companies is the source of supporting the rise in stock prices. Therefore, the brokerage sector generally has a higher growth rate than other sectors in the bull market, and can often become the vanguard in the bull market.

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The brokerage sector is a financial heavyweight sector in the market. The brokerage sector belongs to financial heavyweight stocks. Currently, 43 securities companies have been successfully listed in the A-share market, including 12 large securities firms. Among the heavyweight stocks are listed companies such as CITIC Securities and China Merchants Securities.

The total market capitalization ranks at the forefront of the stock market.

A bull market needs to drive the rise of the market through the rise of heavyweight stocks, so brokerage stocks are the well-deserved vanguard in the bull market.

Investors' subjective emotional factors: Market investors' enthusiasm for the brokerage sector also includes some investors' subjective emotional factors. Stock trading attaches great importance to atmosphere and emotions. When the bull market comes, the entire securities market is closed. At a glance, brokerage stocks are the most closely related to the market.

Relevant sectors.

At this time, it is not easy to make mistakes when buying in accordance with the market atmosphere without considering the fundamentals of individual stocks. Therefore, brokerage stocks will attract a lot of funds from ordinary investors.

For example, aunts and uncles, although they don’t have a lot of funds on hand, but they gather together and have a lot of people, the pool of funds from all parties can play a positive role in promoting the stock price of securities companies.

To sum up, every time a big rise is expected, investors will also expect a big increase in the performance of brokerage firms, so in a bull market, investors will give priority to buying stocks in the brokerage sector.

With the inflow of capital, it is easier to push up the stock price. The better the rise, the more likely it is to attract late-comer investors to invest. In the bull market, brokerage stocks have entered a virtuous cycle in which the amount of capital drives the stock price and the stock price gradually rises, so their performance is extremely bright.