Last year, many sectors in which funds held heavy positions saw substantial gains, such as chips, lithium batteries, medicine, new energy, etc. However, after the New Year, many sectors also began to adjust, and the biggest adjustment was the military industry sector.

As a representative of heavy institutional positions, what is the future of military industry stocks?

I am still very optimistic about the development of the military industry sector. The logic of the military industry sector has not changed much.

First of all, a very important reason for the rise of the military industry sector is the substantial increase in our national defense and military industry budget. In this case, the prosperity of the entire industrial chain will naturally increase, and large investments will inevitably bring great benefits. In the past, military industry stocks

Most of the performance is mediocre. Such an expectation is also the reason for the previous speculation in military industry stocks.

Secondly, for some key military industry categories, it is inevitable to increase investment in research and development.

For example, we often hear that engines and large aircraft are the top priority of the military industry, and relevant listed companies that are responsible for this must have the possibility of revaluation.

On the whole, whether it is the complete machine factory or the upstream materials and electronics, there is great potential. Judging from some of the performance reports, the performance of listed companies is basically in line with the expectations of the industrial chain boom.

So why has the military industry adjusted so deeply recently?

In addition to the reasons for the previous excessive rise, Dana also mentioned another possible reason and hopes that investors will pay attention.

The current market is not only a long market. Due to the role of margin trading, short selling is also possible. Including the previous 500 securities lending ratio was very high. Although some are quantitative, the possibility of unilateral short selling is not ruled out. If you continue to do it yourself

If you look at some stocks, you will find that many stocks fall very fast, which was a rare phenomenon in the past.

In other words, unless there are a lot of institutions grouping together, ordinary stocks may continue to fall when encountering market conditions. This is also the role of margin financing and securities lending in helping to rise and fall.

Secondly, in addition to leading military industry companies, the performance fluctuations of some military industry companies are still slightly larger, including several military industry stocks that have experienced large gains some time ago. The final performance is not ideal, which has an impact on the valuation of the entire sector. After all, compared with civilians,

In addition to leading companies, it is still difficult for other related companies to exceed expectations.