When others are panic selling, pick up 'real earnings stocks.' A complete overview of sectors that will turn crisis into opportunity | Cha Young-joo, Director of Wise Economic Research Institute

Summary

Director Cha Young-joo analyzes the recent extreme market volatility with two circuit breakers in one week, attributing selling to fund rebalancing and emotional panic rather than fundamental deterioration. He stresses focusing on earnings visibility and offers specific stock views: Samsung Electronics as a buy-on-dips within its range, LG Electronics as an avoid due to downtrend, LIG Nex1 as medium-term positive on its rights issue, and KB Financial as an attractive dip-buy on strong earnings growth. He cautions against leverage and aggressive buying until the rebalancing cycle ends and pre-earnings season provides clarity.

• Market experienced two circuit breakers in one week driven by fund rebalancing and panic, not fundamental breakdown.
• Samsung Electronics is not a sell; buying on dips in the 300,000–370,000 won range offers 20–30% upside, sell above 400,000.
• LG Electronics chart shows a clear downtrend with low volume, warranting caution and avoidance.
• LIG Nex1's rights issue finances factory expansion, making it positive for medium-term sales growth despite short-term volatility.
• KB Financial preview shows strong interest and non-interest income growth; recent share price pullback creates a buying opportunity.
• Upcoming pre-earnings season and the end of fund rebalancing could stabilize the market after Tuesday.
• Investors should reduce leverage and avoid catching falling knives until volatility subsides and rebalancing finishes.