#KORU South Korean stocks hit a circuit breaker. South Korea’s financial regulators held an emergency meeting about the stock market in the afternoon, after which the losses narrowed somewhat. So, will the market keep sliding, or has it hit bottom and is ready to rebound?
Let me give you the conclusion first: it probably won’t fall much further!
This sell-off was mainly driven by foreign investors pulling out, weaker expectations for AI memory, and forced liquidations among leveraged investors, along with weakness in Nasdaq-linked tech stocks!
Now South Korea’s state-backed funds have stepped in, so they’ll likely support the market in the short term! Also, SK Hynix is the world’s top HBM supplier, Samsung is second, and Micron is third. Those first two together account for half the weight of the Korean index!
Only if the AI bubble truly bursts, HBM demand is sharply revised downward, the price-hike cycle reverses, and memory stocks go from a “supercycle” back to the logic of a traditional cycle, could a new major downward wave begin—with SK Hynix and Samsung both getting hammered, KORU continuing to plunge, and possibly even being cut in half again!
But that scenario is very unlikely. So, after taking a beating, the market should be able to rise again—after all, markets don’t go down or up forever!
To sum up, these are just my personal thoughts and not investment advice. If you guys think I’ve made some sense, give me a little thumbs-up. If you think I’m talking nonsense, go easy on me—I’m still just a 288-month-old baby! 😂
$KORU
Let me give you the conclusion first: it probably won’t fall much further!
This sell-off was mainly driven by foreign investors pulling out, weaker expectations for AI memory, and forced liquidations among leveraged investors, along with weakness in Nasdaq-linked tech stocks!
Now South Korea’s state-backed funds have stepped in, so they’ll likely support the market in the short term! Also, SK Hynix is the world’s top HBM supplier, Samsung is second, and Micron is third. Those first two together account for half the weight of the Korean index!
Only if the AI bubble truly bursts, HBM demand is sharply revised downward, the price-hike cycle reverses, and memory stocks go from a “supercycle” back to the logic of a traditional cycle, could a new major downward wave begin—with SK Hynix and Samsung both getting hammered, KORU continuing to plunge, and possibly even being cut in half again!
But that scenario is very unlikely. So, after taking a beating, the market should be able to rise again—after all, markets don’t go down or up forever!
To sum up, these are just my personal thoughts and not investment advice. If you guys think I’ve made some sense, give me a little thumbs-up. If you think I’m talking nonsense, go easy on me—I’m still just a 288-month-old baby! 😂
$KORU