It is highly likely to move in this pattern now | Chesley Investment Advisory Executive Director Park Se-ik [Womae Shinbak / 26.08.18.Tue]

Summary

Park Se-ik argues that investors should buy quality assets during sharp selloffs rather than raising cash at the bottom. He also warns that a US 10-year Treasury yield above 4.7% acts as a ceiling for Korean equities. On semiconductors, he sees AI demand in a long-term shortage but expects near-term range-bound volatility for about 1.5 years.

• Park advises buying good assets during panic selloffs and says Chesley bought KRW 10 billion during the recent market plunge.
• He argues that selling stocks at the bottom to increase cash is not proper risk management.
• A US 10-year Treasury yield above 4.7% is described as a hot-water threshold that suppresses Korean equities.
• Moody's Korea growth upgrade and strong semiconductor cycle view are cited as consistent with the backdrop.
• AI semiconductor demand is seen as structurally tight with long-term stable growth.
• Interest-rate pressure and Changxin Memory supply expansion are expected to keep semiconductor stock volatility elevated.
• He recommends cautious box-range trading in semiconductors for the next year and a half.