Korean Stocks 'Buy Sell Buy Sell'... Why Are Foreigners Doing This? | Chesley Investment Advisory Executive Director Park Se-ik

Summary

Park Se-ik analyzes the extreme volatility in Korean markets, linking the sell-off to the collapse of a leveraged hedge fund. He reveals his own purchases of KODEX 200 and KOSDAQ 150 ETFs during the panic, lays out a trading range for the KOSPI ETF, and gives a strong multi-month bullish call on the KOSDAQ ETF. He also cautions against leveraged products, particularly SOXL, and reviews news on the yen carry trade, analyst target gaps, and foreign flows.

• KODEX 200 was bought during panic and may be traded within a 6,700–7,200 range with a possible re-dip in September.
• KOSDAQ 150 ETF is heavily discounted and can deliver at least 40% upside by next April based on seasonal and valuation factors.
• The forced liquidation of the Situational A-Wes hedge fund triggered the sharp drop, but that event likely marked a near-term bottom.
• 3x leveraged ETFs such as SOXL are described as gambling tools and should be completely avoided.
• Foreign buying surged on July 31, helped by US big-tech earnings beats rather than genuine won strength, and foreigners remain hedged on KRW.
• Analysts are struggling with extreme volatility, but market price discovery will ultimately reassert itself.