Even if there are many semiconductors, even if there is a leading stock, or even if you are crying over bio, you must endure and watch | Author Jang Woojin

Summary

Jang Woo-jin discusses the Korean market outlook, emphasizing caution due to liquidity risks, high valuations, and potential slowdown in semiconductor earnings growth. He advises increasing cash allocation, holding existing positions in non-semiconductor sectors for a rotation rebound, and selectively buying US tech leaders and semiconductors with a small portion. He also mentions preferred stocks as a late-cycle play and warns against shorting the market.

• Market has risen significantly, and caution is warranted with high valuations and liquidity tightening signals.
• Semiconductor earnings growth will slow after 2026-2027, reducing operating leverage.
• Indonesia rate hike and Bitcoin decline are early warnings of global liquidity stress.
• Increase cash allocation to prepare for corrections and buy opportunities.
• Hold existing positions in power equipment, defense, securities, and biotech sectors for potential rotation.
• Long-term investors should focus on US tech leaders (NVIDIA, Google, Amazon, Microsoft).
• Semiconductors (Samsung Electronics, SK Hynix) are still investable but only with 20-30% new allocation.
• Preferred stocks may see a late-cycle rally, and shorting via inverse ETFs is not recommended.