My stock is fine, so why is it falling too? 'Forced selling' risk right under our noses

Summary

Cha Young-ju, Director of Wise Economic Research Institute, discusses the sharp selloff in Samsung Electronics and SK hynix despite strong earnings. She attributes the decline to technical breakdowns and forced selling from margin calls, but remains bullish on the two stocks, arguing that robust fundamentals and low valuations support a recovery. She also advises rotating into sectors with improving earnings that have not yet been priced in, such as secondary batteries, financials, securities, banks, cosmetics, and cement.

• Samsung Electronics and SK hynix dropped sharply on technical selling and margin call forced liquidations despite strong earnings.
• Speaker does not view the drop as the start of a bear market; earnings strength and sub-10 P/E are supportive.
• Upcoming earnings from ASML, TSMC, and Korean firms will be crucial to confirm the recovery thesis.
• Margin call cascades can spread to other stocks and may cause near-term pressure, but the risk fades if prices rebound by half.
• Stocks with improving earnings that haven't rallied (e.g., secondary batteries, financials, cosmetics, cement) may outperform.
• Single-stock leveraged ETF regulatory uncertainty is adding to market confusion and volatility.