Leto Bao: Storage Sector Faces Chain Liquidations, Deleveraging Healthier in the Long Term

Odaily reported that Leto Bao, who gained popularity for "earning 30 million yuan from ByteDance stock trading," shared his analysis on the recent sharp decline in the storage sector. He stated that institutional capital flight combined with leveraged funds facing forced liquidations triggered a cascade of liquidations, leading to a downward spiral in the market. He believes that moderate clearing of leveraged capital is more conducive to the long-term healthy development of the market.

Additionally, Leto Bao expressed that investing requires establishing one's own research framework and conviction. He advised ordinary investors to choose their investment methods based on their own risk tolerance: those under significant life pressure should prioritize reducing leverage; those lacking savings should focus on improving their earning capacity; those with some capital but lacking investment experience could prioritize allocating to index funds rather than individual stocks.