Don't Look for Profit Opportunities in Volatile Markets

Summary

Lee Ji-hwan, CEO of Aurora Investment Advisory, warns against trying to profit from extreme intraday volatility and explains why the AI‑driven market rally does not support broad sector rotation. He remains bullish on Korean and US AI semiconductors, advises avoiding KOSDAQ and short‑covering traps in secondary batteries and pharma, and highlights consumer discretionary as a conditional watch if US stimulus emerges. A disciplined percentage‑based scaling approach for core chip holdings is recommended.

• Current volatility is driven by forced liquidations, not predictable trends; avoid short‑term trading and leveraged ETFs.
• The entire market rally runs on AI momentum alone—no normal economic cycle supports broad rotation.
• Samsung Electronics and SK Hynix are long‑term AI core holdings; corrections are buying opportunities, not a top.
• US AI semiconductor exposure (NVIDIA‑linked) complements Korean chip longs.
• When chip leaders correct, short‑covering bounces in secondary batteries and pharma trap retail investors—do not chase them.
• KOSDAQ lacks AI exposure and faces structural policy risks; avoid the index.
• Consumer discretionary (cosmetics, tires, entertainment) could become investable if US fiscal stimulus creates a temporary economic boom—monitor closely.
• Implement a fixed‑allocation scaling plan (e.g., base 10%, swing ±30%) to survive the high‑volatility environment.