Kospi Has Bottomed On Insane Week: 3-Minutes MLIV

Watch on YouTube ↗  |  July 31, 2026 at 07:51  |  3:09  |  Bloomberg Markets
Speakers
Mark Cudmore — Executive Editor, Bloomberg Live / Macro Strategist

Summary

Mark Cudmore analyzes the extreme volatility in the Kospi, declaring a long-term bottom and expecting global stocks to reach record highs on still-rising AI capex. He also sees near-term dollar strength and flags the possibility of further BOJ yen intervention.

  • Kospi suffered a wild 21% weekly loss then rallied 26% from Wednesday lows; Mark Cudmore calls a long-term bottom.
  • He cites good valuation, retail capitulation, clean positioning, and AI capex support as reasons for the Kospi call.
  • AI capex is still increasing, leading him to expect global equities to reach a fresh all-time high in the coming earnings seasons.
  • Volatility seen in July is expected to become a lasting feature of the AI capex end game.
  • The Fed took a credibility blow, but US rates still have upside potential, supporting the dollar in the near term.
  • BOJ intervention is likely to continue; BOJ policy changes are marginal, and lack of follow-through would put the yen at risk.
Ideas
Mark Cudmore Executive Editor, Bloomberg Live / Macro Strategist 0:27
Kospi hit long-term bottom, good value
After a 26% rally from Wednesday's low, the Kospi has put in a long-term bottom. The market is now good value, retail investors have capitulated, positioning is clean, and the AI capex bubble continues to support the fundamental story.
EWY HIGH
Mark Cudmore Executive Editor, Bloomberg Live / Macro Strategist 0:51
AI capex drives global stocks to record high
The AI capex bubble is not over; capex is still increasing and earnings will likely accelerate into the next earnings season, pushing global stocks to a fresh record high even though volatility will remain a feature.
VT HIGH
Mark Cudmore Executive Editor, Bloomberg Live / Macro Strategist 2:57
Dollar has short-term upside on rates
The Fed disappointed and took a credibility hit, but US rates still have more upside, which will support the dollar in the short term, delaying the start of a big structural dollar down-trade.
UUP MED
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815 Money Talk (815머니톡) · Jul 31

This Bloomberg Markets video, published July 31, 2026, features Mark Cudmore discussing EWY, VT, UUP. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mark Cudmore  · Tickers: EWY, VT, UUP