Unfair Stock Market…What Kind of Investments Should Individual Investors Make?

Summary

Jung Woo-chang, a manager at NH Investment & Securities, discusses the reasons behind the severe selloff in Korean semiconductor stocks, highlighting the liquidation of a leveraged fund and market manipulation suspicions. He argues that SK Hynix is approaching a turning point versus CXMT, Samsung Electronics is deeply undervalued with record profits ahead, and that patience in big tech like Amazon has paid off. He advises individual investors to use dollar-cost averaging into quality names and avoid leverage. The KOSPI index is seen targeting 7,000-7,500, driven by undervaluation across multiple Korean sectors.

• Korean semiconductor stocks suffered due to forced liquidation of a leveraged AI-focused fund (Leopold) and market manipulation rumors.
• SK Hynix’s market cap has nearly converged with China's CXMT despite a 10x operating profit gap, suggesting a turning point for Hynix.
• Samsung Electronics is set to deliver record quarterly profit yet trades at a deep discount; DCA strategy recommended.
• Amazon's 1.5-year stagnation was rewarded by a surge to new highs, proving patience in big tech works.
• Money is rotating from overcrowded semiconductors into big tech/software, with Palantir's strong earnings as a catalyst.
• Korean non-semiconductor sectors (oil refining, shipbuilding, power equipment, autos, cosmetics) are outperforming and deeply undervalued.
• KOSPI is forecast to rally to 7,000-7,500 in August, a 15-20% gain, as supply/demand imbalances normalize.
• Investors should avoid leverage, maintain emergency cash, and adopt a long-term, gradual buying approach.