Leto Bao: Storage sector enters cascading liquidations; deleveraging is healthier in the long run

Leto Bao, who gained fame by "making 30 million yuan from ByteDance stock trading," published an analysis on the recent sharp decline in the storage sector. He stated that the combined effect of institutional capital exits and leveraged positions being liquidated triggered cascading liquidations, leading to a downward spiral in the market. He believes that a moderate clearing of leveraged positions is more beneficial for the healthy long-term development of the market.

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