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KOSPI increases almost 400 points in one month
Experts say “the possibility of a short-term adjustment is high, please note”
Photo = Getty Image Bank
With the stock market on the rise at home and abroad, there is widespread concern that there is a possibility of a correction in the short term.
According to the Korean Stock Exchange on the 11th, the KOSPI index started to rise sharply from last month. KOSPI, which started at the 2300 mark on the first trading day of last month, rose to the 2400 mark in just four trading days and then rose sharply to the 2500 mark in the middle of last month. After that, after hitting the 2600 line mark in 7 business days, and even crossing the 2770 line that entered this month, they are looking for victory.
The American stock market is no different. The Dow Jones 30 industrial average, which was at the 26,000 mark at the beginning of last month, has passed the 30,000 mark this month.
The spread of a new vaccine against coronavirus infection (Corona 19) and the anticipation of additional stimulus measures in the United States have led to a preference for risky assets.
However, Yeouido Securities Price (previously) began to put more weight on caution, saying the index is likely to tighten. Although the long-term uptrend will continue, experts believe that a short-term adjustment due to overheating is inevitable.
In the case of domestic stock markets, there are a host of events such as difficulties negotiating US economic stimulus measures, votes from the US electoral team and the Bank’s Federal Open Market Committee (FOMC) US Central (Fed), and a short-term adjustment is forecast.
Dae-hoon Han, researcher at SK Securities, said: “Planned big events can increase alertness” and underlined: “The uptrend will remain in effect until next year, but it is necessary to open the possibility of lateral changes in the short term”.
The US stock market also raised the possibility of a short-term correction. This is because a partial lockdown due to Corona 19 is being implemented, and the burden on the share price level relative to performance has increased. Furthermore, technical indicators are also considered to have entered the overheating zone.
Han Sang-hee, a researcher at Hanwha Investment & Securities, said: “The economy is temporarily slowing as the shutdown resumes due to the third coronavirus epidemic.”
“The Fear and Greed Index released by CNN has also peaked, and the ratio of cash to investors is the lowest in two years.”
Lee Song-ryul, Reporter Hankyung.com [email protected]
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