Even good stocks collapse in the face of supply and demand! A market with repeated sharp fluctuations, when should we sell? | Cha Young-joo, Director of Wise Economic Research Institute

Summary

Director Cha Young-joo analyzes the current volatile Korean market driven by supply-demand imbalances and credit risk. He remains bullish on Samsung Electronics and SK Hynix, expecting them to rebound on solid fundamentals as earnings season begins. He also identifies positive niche opportunities in financials, cosmetics exporters, LG Electronics, and entertainment stocks, while emphasizing disciplined risk management and the importance of monitoring earnings reports.

• The market is pressured by outflow of retail money and reduced credit, but the upcoming earnings season is expected to provide support.
• Samsung Electronics and SK Hynix fundamentals are strong; the speaker rejects semiconductor peak-out fears and expects them to lead the rebound when volatility subsides.
• Korean financials (KB Financial, Shinhan Financial, NH Investment & Securities) are benefiting from high trading volumes and record interest income.
• Cosmetics exporters (APR, Dalba Global, Cosmax, Kolmar) are gaining global market share with strong earnings growth and positive analyst reports.
• LG Electronics is seeing a re-rating driven by stable core operations and the emergence of robotics as a new growth engine.
• Entertainment stocks (HYBE, SM Entertainment) offer upside with stable line-ups and Chinese market opportunities.
• The speaker advises selling stocks when fundamentals deteriorate or when the technical uptrend breaks, and suggests rebalancing into stronger names.