I Don't Talk to People Who Sold Samsung Electronics in Fear | Myeong Min-jun, Park Ga-young, Lee Ji-hwan

Summary

The market leader is semiconductors, and chasing rotation into pharma/bio or KOSDAQ is an illusion. Lee Ji-hwan advises avoiding rate-sensitive sectors and KOSDAQ, staying long Korean semis and US AI ETFs, and watching for a future entry into KOSDAQ IT equipment when the financial cycle shifts.

• Semiconductors and power equipment are the only leading sectors; rotation into other sectors is not happening and is a trap.
• Rate-sensitive sectors like pharma/bio and batteries should be avoided as global rates stay elevated.
• KOSDAQ remains under pressure due to adverse financial cycle, ineffective policies, and reduced momentum demand from hedge funds.
• Massive foreign selling in Korea is largely passive rebalancing and not a bearish signal for semis.
• Investors should hold/add Samsung Electronics, SK Hynix, and US AI semiconductor ETFs.
• When the financial cycle turns (late 2023/early 2024), KOSDAQ's IT equipment/materials sector may become attractive.
• The US-Iran deal and the uncertainty around new Fed Chair Kevin's policy are key short-term risks.