Buy at the Peak of Pessimism, Will it Work in This Market Too? | Baek In-jae Deputy Center Head [Double Crew]

Summary

Baek In-jae, Deputy Center Head, advises buying at the peak of pessimism in the current market. He argues that the AI semiconductor cycle remains intact, with Big Tech CapEx unstoppable due to the US-China AI competition and long-term contracts changing memory dynamics. He recommends holding through month-end for earnings confirmation from SK hynix, Samsung Electronics, and US hyperscalers, viewing the sell-off as a buying opportunity. He also highlights record foreign inflows into the EWY ETF as a bottom signal.

• Market is gripped by fear, matching Templeton’s 'peak of pessimism' buying moment.
• Urges investors to hold until end-of-month Big Tech earnings confirm AI CapEx remains robust.
• The semiconductor memory cycle isn't ending; the correction is an overreaction within a bull trend.
• Long-term supply agreements (LTA) are reshaping the memory cycle, making it more durable and less cyclical.
• US-China AI rivalry ensures CapEx cannot be cut, benefiting memory suppliers like SK hynix and Samsung Electronics.
• Earnings calls may also reveal stronger shareholder return policies, adding a catalyst.
• Record inflows into the EWY ETF indicate foreign investors see a bottom and are re-entering the Korean market.