The Bill for AI Concentration Has Arrived, It's Hard to Re-enter the Market If You Leave Now | Hong Seonae, Song Jaekyung, Dimension Investment Advisory CEOs

Summary

CEO Song Jaekyung analyzes the 44% crash in Korean markets as a positioning unwind in extreme AI/semiconductor concentration, not a recession signal. He argues the price correction is nearly done but a time correction may follow due to seasonality and Fed uncertainty. He stays bullish on AI-driven semiconductor demand backed by cloud giants, sees Korean market as a value opportunity, and advises investors to hold positions while avoiding leveraged and inverse ETFs.

• Market slump due to unwinding of extreme semiconductor ETF inflows, not US recession
• US semiconductor ETF inflows reached $46B in 7 months vs $22B in 9 years
• Price correction likely nearly over, but time correction ahead due to seasonal weakness and Fed risks
• Cloud capex from Microsoft, Amazon, Alphabet remains strong with low default risk
• Korea now a value market; rotation into value sectors starting
• Investors should stay invested and not exit now
• Strong warning against using single-stock leveraged and inverse ETFs