When it strongly bounces, let go of your lingering attachment. If you don't reduce your allocation then... | Hong Seonae, Jang Woojin, Geumsigong CEO

Summary

CEO Jang Ho-jin of Geumsigong joins the Yeouido Insight program to assess the Korean stock market's shift from volatile dip-buying patterns to a genuine correction. He highlights weakened supply-demand dynamics, pension fund rebalancing headwinds, and the fading reliability of short-term bounces. He cautions specifically on the semiconductor sector ahead of Big Tech earnings and capex decisions, and advises using any strong rebound to reduce equity exposure rather than chasing it. He also strongly warns against buying inverse or leveraged inverse ETFs at this stage.

• The market has transitioned from high-volatility dip-buying to a deeper correction with broken bounce patterns.
• Pension fund rebalancing limits upside and no longer provides a strong floor, while foreign and retail buying power is weak.
• Semiconductor sector faces risks from potential Big Tech capex disappointments, data center delays, and peak margins.
• The July earnings of Google, Meta, Amazon will be pivotal for the AI/capex narrative and Korean semiconductor direction.
• Investors are urged to reduce positions on any solid bounce rather than hold on with lingering attachment.
• Inverse and leveraged inverse ETFs are seen as dangerous at current levels due to the risk of sharp snap-back rallies.
• Macro signals (Bitcoin, oil, US yields) suggest global macro is not the primary culprit; domestic sentiment and supply are the main drags.