I'm not telling you to sell all your semiconductors. Balance your large-cap stocks in 'this place' for the second half of the year

Summary

Lee Jae-gyu, PB Assistant Manager at SK Securities, argues that second-half 2024 requires portfolio rebalancing away from concentrated semiconductor holdings. He recommends rotating into other large-cap laggards, shipbuilding, cosmetics, and KOSDAQ ETFs to capture robot momentum, while still retaining some semiconductor exposure.

• Speaker stresses the first-half extreme semiconductor rally is unlikely to repeat; investors should diversify away from heavy Samsung Electronics/SK Hynix concentration.
• Recommends reducing semiconductor allocation and increasing exposure to other lagging large caps and sectors.
• Names Hyundai Motor and HD Hyundai Heavy Industries as stocks likely to outperform semis in H2 due to catch-up potential.
• Bullish on Korean shipbuilding sector because earnings jumped 30% while stocks fell 30%.
• Favors KOSDAQ index ETF to capture rotation and robot-related momentum, citing index buying and robot themes.
• Positive on Korean cosmetics sector driven by strong European sales growth and stable North America/Japan demand.
• Cautious but watchful on Samsung Electro-Mechanics (MLCC) which is mirroring the semiconductor cycle, contingent on Samsung Electronics/SK Hynix holding up.