Buy into disagreement

Stock Market Response Strategies Under Geopolitical Turbulence: Focus on Main Trends and Policy Opportunities [Taogu Ba]
【Author’s Viewpoint】

1. Don’t panic with a low open; a sharp decline is an opportunity.
   Geopolitical events over the weekend are likely to impact market sentiment at the open, increasing the chance of a gap down. But A-shares are not high-valued, and with stability expectations before the Two Sessions, an early sharp drop is just emotional trading, not a point to cut losses. Remember, buy on divergence, don’t sell in panic.
2. Strengthen main themes, expand logic outward.
   The market’s original focus on “price hikes” and “AI” will gain new catalysts from this event, and the logic will further extend.
   ① Price hikes and resource commodities: Oil, gas, gold—safe-haven assets—are likely to open high tomorrow, but these often have many lurking positions, making “gap up then fall” a common trap. If you don’t hold positions, just watch; this isn’t easy money. The truly valuable mid-term assets are those with real supply-demand gaps, like tungsten, antimony, and rare earths. You can watch for dips but avoid chasing highs.
   ② AI and technology: This is the key! The market may shift from hype around computing power to “safety.” Sectors like military industry informatization, drones, satellite communications, and cybersecurity fall into the “AI + military” category. These are triggered by recent events and align with the policy focus on “new productive forces,” attracting institutional interest and speculative capital. Also, if DeepSeek’s new model launches, domestic computing power will fluctuate again, but military AI is the latest hot topic.
3. Response strategies: Don’t be impulsive, look for expectation gaps.
   ① Don’t chase high: For large gap-ups in oil, gas, gold, if you don’t have positions, don’t force it. The risk-reward ratio isn’t favorable, and you may get caught off guard.
   ② Think long-term: Focus on “AI + military informatization,” “commercial aerospace,” and “domestic computing power.” These themes have catalysts and policy support, allowing for sustained stories.
   ③ Watch the Two Sessions: As the meetings approach, sectors related to “expanding domestic demand” and “technology” at low levels may rotate with policy implementation, providing balanced portfolio opportunities.

【Final Words】
The core ideas are “stay calm, don’t chase highs, focus on technological extension directions.” Also, set stop-loss levels in practice to prevent unexpected worsening of geopolitical situations. After all, even the best logic needs market validation and risk control.

(Disclaimer: The above content is for sharing investment logic only and does not constitute any investment advice. Investing involves risks; trade cautiously.)