#韩国KOSPI指数跌超2%
Because of the South Korean government's foolish decisions, South Koreans' pensions are in danger…
The National Pension Service originally allocated 14.4% of its portfolio to Korean stocks, with a rebalancing mechanism that automatically trims its holdings when the market rises—forcing it to buy low and sell high.
But during the sharp rally in Korean stocks in the first half of this year, the pension fund not only didn’t sell; it actually bought more 😂, raising its allocation to 20.8%. It also allowed a six-percentage-point swing in either direction and suspended rebalancing. The result: Korean stocks plunged in the second half of the year, leaving the pension fund stuck with losses.
Today’s data shows that foreign institutions are all selling, while the Korean pension fund has no room left to buy. Selling would only accelerate the market’s collapse, leaving it caught between a rock and a hard place.
Technically speaking, the bear market in Korean stocks has only just begun… The outlook for South Korea’s National Pension Service is truly grim.$KORUB
Because of the South Korean government's foolish decisions, South Koreans' pensions are in danger…
The National Pension Service originally allocated 14.4% of its portfolio to Korean stocks, with a rebalancing mechanism that automatically trims its holdings when the market rises—forcing it to buy low and sell high.
But during the sharp rally in Korean stocks in the first half of this year, the pension fund not only didn’t sell; it actually bought more 😂, raising its allocation to 20.8%. It also allowed a six-percentage-point swing in either direction and suspended rebalancing. The result: Korean stocks plunged in the second half of the year, leaving the pension fund stuck with losses.
Today’s data shows that foreign institutions are all selling, while the Korean pension fund has no room left to buy. Selling would only accelerate the market’s collapse, leaving it caught between a rock and a hard place.
Technically speaking, the bear market in Korean stocks has only just begun… The outlook for South Korea’s National Pension Service is truly grim.$KORUB