Why Semiconductors Can't Rise Despite Good News... The Stock Market Landscape Will Change Completely in the Second Half | Lee Jaegyu, SK Securities PB Deputy Manager

Summary

Lee Jaegyu, SK Securities PB Deputy Manager, discusses the second-half market outlook, expecting a gradual normalization with semiconductors offering valuation support but limited upside. He highlights rotation into beaten-down sectors, favoring Celltrion and Naver, and recommends using index ETFs to capture the broad recovery while emphasizing probability-based investing and position sizing.

• Semiconductor sell-off creates a buying opportunity for underweight investors, but upside is likely capped compared to the first half.
• Good news from Alphabet, Intel and AI events has not yet lifted Korean semis, potentially setting up a shakeout and bounce.
• Beaten-down sectors such as biotech/pharma and select internet stocks are showing relative strength and recovery patterns.
• Celltrion is highlighted as particularly attractive due to its relative strength against the falling KOSPI.
• Naver is near historically reasonable valuations and could be accumulated for the long term.
• The market normalization is supported by ample liquidity and the view that macro dips are buying opportunities.
• Index ETFs are recommended as a first step to participate in a broad market rebound.
• Investors should focus on probability-based decisions and position sizing rather than overconfidence.