If you do shareholder returns like this, it will have a tremendous effect" But there's a problem | Lee Jaeman, Head of Global Investment Analysis, Hana Securities Research Center [Double Up]

Summary

Lee Jaeman argues that easing short-term rate pressure and a US investment-led expansion favor equities, especially growth and quality stocks. He highlights Korean sectors with next-year earnings growth above semiconductors: secondary batteries, renewable and secondary-battery chemicals, IT hardware, and defense. He also discusses how Alphabet's bond deal eased big-tech credit fears and lifted Oracle, and explains that Samsung Electronics and SK hynix need Micron-style free-cash-flow shareholder returns to re-rate.

• US ISM manufacturing expansion and record S&P 500 earnings support risk assets.
• Long-term Treasury yields are rising on real growth, not inflation, steepening the curve.
• Growth and quality styles have historically performed well in this rate-and-growth setup.
• Korean quality examples include Samsung Electronics and SK hynix.
• Next-year profit growth candidates include secondary batteries, renewable chemicals such as OCI, semiconductor materials/equipment/parts, and defense.
• Alphabet's oversubscribed bond issue eased hyperscaler credit concerns, and Oracle rebounded about 30% from its low.
• Samsung Electronics and SK hynix may need stronger shareholder return policies to re-rate.