30% Correction… Now is the Time to Actively Buy | Chesley Investment Advisory Executive Director Park Se-ik

Summary

Park Se-ik discusses the 32% market correction, arguing that without a recession such a drop is likely near a bottom and presents a buying opportunity. He explains that the negative catalyst for memory chipmakers is now priced in and those stocks are rebounding. He strongly warns against leveraged ETFs, illustrating the severe decay with a 3x KOSPI product example, and advises investors to buy in installments while avoiding double and triple leveraged instruments.

• KOSPI down 32%, historically corrections without recession seldom exceed 40%, suggesting limited further downside.
• Valuations are cheap and the rebound could last from one month to a year if this is the bottom.
• Memory chip stocks (Samsung Electronics, SK hynix, Micron) sold off on CXMT IPO fears; with the news now fully known, the bad news is priced in and stocks are bouncing.
• Won-dollar rate has strengthened despite foreign selling, signaling no systemic risk and supporting the market outlook.
• Leveraged ETFs (2x and 3x) are extremely dangerous due to volatility decay; a detailed example of a 3x product shows it destroyed wealth even as the KOSPI recovered.
• Investors should be buying in installments now rather than panic-selling, especially if they have cash reserves.
• A new pension fund (Chesley Korea-China-US Focus) was launched, but the speaker mainly promotes its tax benefits and personal investment.