Am I the only one not making money? The crash market fueled by the leverage of greed | Hong Seon-ae, Park Seung-young, Hanwha Investment & Securities PLUS Business Division Portfolio Strategy Team Leader

Summary

Park Seung-young, Portfolio Strategy Team Leader at Hanwha Investment & Securities, analyzes a market driven by leveraged FOMO that has led to rapid corrections. He advocates a 30-30-30 allocation to US stocks, Korean stocks, and bonds, while warning that excessive single-stock leveraged ETFs will cause further volatility. He recommends rotating from Samsung Electronics and SK Hynix into semiconductor equipment, adding Korean biotech as falling rates are not yet priced in, and tactically reducing the memory names ahead of Q2 earnings.

• Volatility is driven by FOMO and heavy leveraged ETF buying, not fundamental panic.
• Suggested portfolio: 30% US equities, 30% Korean equities, 30% bonds to reduce emotional strain.
• Rotate from Samsung Electronics and SK Hynix into semiconductor equipment as memory capex expands.
• Korean biotech is attractive because the decline in bond yields has not been reflected in the sector.
• Tactical underweight on Samsung/Hynix for Q2 earnings as consensus has already been aggressively raised.
• VKOSPI rising alongside KOSPI indicates fear-of-missing-out rather than normal risk appetite.
• AI capex remains strong but is not accelerating, limiting the upside surprise for semiconductor stocks.