Why can't the military performance in history last for a long time?
The overall long-term performance of military stocks is excellent. In the long term, the military industry index is always constantly rising. Military stocks are characterized by great fluctuations, but in every bull market, there will always be many big bull stocks that are only 1 times as big.
The prospect of military stocks is very optimistic. Every time a big bull market comes, military stocks are never absent. Almost every bull market shows its remarkable performance, and it beats the broader market every time. Judging from its outstanding performance in history, military stocks are very suitable for long-term investment.
It has been five years since the peak of the last bull market. It fell from 215 to the bottom in 218, basically at the same time as the broader market. Judging from the chart of the last two years, another wave of market is on the way. At the same time, the market has also experienced the first wave of bull market and the second wave of bull market.
The market is not over yet, and the third wave of bull market is already brewing. Of course, military stocks will continue to be bullish. The mission of military stocks in the stock market is very clear. It seems destined to outperform the market in the bull market, at least in the history of A shares.
Military stocks are supported by policies, and the defense expenditure budget has been growing steadily since 217. By 219, the defense expenditure budget will be close to 1.2 trillion, and the military expenditure has been expected to increase by 6.6% this year. What are you worried about stocks with policy support?
which companies are the military stocks looking for? Performance is always king. Our investment has always attached importance to low valuation and high dividend. Stocks with a price-to-book ratio of less than 2 times and a dividend yield of 4%~5% can be allocated.
Then wait patiently for the arrival of the bull market ...
Professional requirements for selected stocks are relatively high. Only by choosing the right stocks can you outperform the index, while most ordinary investors can't outperform the index for a long time. Therefore, I suggest that ordinary amateur investors buy index funds, at least you will keep up with the rhythm of the index. When you look at the industry, you can buy it by investing in the industry index.
CGB CSI Military ETF Link C
tracks the military industry index. When you start holding funds, you are equivalent to diversifying the stocks in the military sector. Why do I always suggest a fixed investment to buy? Because the market is unpredictable, fixed investment is just the nemesis of uncertainty. You will be happier and happier if you implement the monthly fixed investment method!
Now that the bull market is in the initial stage, you should be patient enough to wait for the bull market to rise. I am very confident that next year may usher in the bull market. Come on, success is just around the corner.