The Deeper the Valley, the Higher the Mountain | Chesley Investment Advisory Executive Director Park Se-ik

Summary

Park Se-ik discusses the recent market turmoil, his purchases of KODEX 200 and TIGER KOSDAQ 150 after panic selling, and tactical plans for the indices. He highlights seasonal strength for KOSDAQ expecting at least 40% upside by next April, while KODEX 200 may see volatility with a selling range of 6,700–7,200 and a dip opportunity in early September.

• Park Se-ik purchased 80 billion won in KODEX 200 and 20 billion won in TIGER KOSDAQ 150 after the sharp sell-off.
• KOSDAQ has been heavily oversold and underperforming large-caps; he sees a rebound with at least 40% upside by April next year.
• KODEX 200 is expected to be choppy; he plans to sell partially in the 6,700–7,200 range and may re-enter on a dip around early September.
• KOSDAQ and KOSPI small-caps have a seasonal pattern of weakness in summer and strength from year-end into odd years.
• Panic selling and sharp rebounds create a bottoming process that shakes out weak hands over one to two months.
• Analysts should provide conviction-based calls rather than chasing market momentum.
• Market will remain volatile until major events (war, US rates, bond issuance) pass.