[ad_1]
The New Years KOSPI index continued to rise for two days in a row, hitting the bottom of the record 3000 line. On the 5th, the market closed at 2,990.57, up 1.57%, with less than 10 points remaining to the 3000 line. There is overflowing market liquidity behind the all-time highs in stock prices every day. Various subsidies have been released amid ultra-low interest rates, and the amount of floating funds has far exceeded 1.2 trillion won. This money flows into the stock market after real estate.
The ‘Donghak ants’, estimated at 10 million people, are another driving force behind the stock price surge. Individual investors bought stocks worth 60 trillion won last year, driving the index up. In the stock market, which was like a ping pong game between foreigners and institutions, it has quickly emerged as a new investment force.
As the KOSPI 3000 line approaches, optimism abounds in the stock market. US economic media CNBC predicted that “Korea’s response to the coronavirus, fiscal expansion policy, and diverse industrial makeup led to the performance of the stock market,” and that “share prices will continue to rise.” There is also the view that Korea’s leading companies in semiconductors, automotive chemistry, etc., are widening the gap in the middle of the crown, and ‘Korea Discount’ is being re-evaluated as ‘Korea Premium’. There is also the possibility that the KOSPI will go up to the 3300 line this year.
On the other hand, there are warnings of adjustments after a sudden spike. If it goes above 100%, the Buffett Index (market cap ÷ nominal GDP × 100), a sign of overheating, has already risen to 123.4% last year. Vice President Byron Bean Blackstone predicted that “there will be a 20% correction in the first half.” If some important national sectors are excluded, there is concern that the gap between the stock market and the real economy is too great. There is also an inflation warning. If economic activity resumes due to herd immunity after vaccination, prices could rise, and if the US central bank tightens, the stock market could be hit hard.
In fact, there are signs of overheating. Online, ‘earnings verification shots’ are popping up that reveal earnings from stock accounts. Credit loans approaching 20 trillion won show that “investing in debt” and “not asking for investment” are thriving. However, among individual investors, the ‘FOMO (fear of missing out) syndrome’, which is eager to be alienated from the bull market, is spreading and eager to buy for fear of becoming ‘falling’.
These days, the warnings are beginning to sound throughout the market with prevailing optimism. Bank of Korea Governor Lee Joo-yeol said yesterday in his New Year’s speech that he feared “the market could be badly affected even by a small shock in a state where the debt level is high and the gap between issues is high. financial and real is widening “. It is time to invest wisely with investment risks and adjustability in mind.
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution
