Chesley Morning Brief - Global Stock Valuation - May 18

Summary

The video reviews global market conditions after a sharp Friday selloff driven by rising oil prices, higher US Treasury yields, and disappointing US-China summit outcomes. Speakers discuss impact on Asian and US equities, semiconductor sector volatility, Bitcoin weakness due to Strategy's potential sales, and Korean market correction. Park Se-ik highlights an opportunity in Korean battery cell makers and advises watching interest rates for entry points.

• US 10-year yield breached 4.59%, causing equity selloff led by semiconductors.
• US-China summit provided no breakthrough on chip exports, disappointing markets.
• Bitcoin remains in a range near $78k with selling pressure from Strategy's convertible bond repurchase.
• Korean market opened sharply lower, KOSPI down 3.6% in early trading.
• Battery sector analyst Kim Hyun-soo recommends buying large-cap cell makers on the dip.
• Historical analysis suggests current correction may be short-term if rates stabilize.
• Fed rate hike probability rose to 40% per FedWatch, adding macro uncertainty.
• Park Se-ik advises waiting for 10-year yield to drop below 4.45 before adding risk.