A New Bull Market Begins at Year-End or Early Next Year | Chesley Investment Advisory Executive Director Park Se-ik

Summary

Park Se-ik expects the Korean equity market to remain in correction until mid-September and then begin a new bull market around year-end or early next year. He also lays out a panic-only Korean equity strategy that buys only during extreme selloffs and exits after a 26% gain, citing prior 30%+ panic entries. Park discusses plans to package these ideas into a stabilization fund and pension-friendly bond-mixed products.

• Korean equities are expected to correct until mid-September.
• A new bull market is expected to start around year-end or early next year.
• June/July entrants may be shaken out before the uptrend resumes.
• The proposed stabilization fund would stay in cash and buy only during panic selloffs.
• The panic strategy targets a mechanical 26% profit exit.
• Prior panic entries in KOSDAQ, KODEX, and TIGER KOSDAQ reportedly returned over 30%.
• Pension-account-friendly bond-mixed versions of the strategy are being considered.
• A larger stabilization fund could help reduce Korean market volatility from foreign derivative flows.