What do you guys think about the insane stock rally? Excited or concerned?

What do you guys think about the insane stock rally? Excited or concerned?

So Korea’s stock market capitalization blew past 7 trillion won today which means it may have surpassed Taiwan and India to become the fifth largest in the world today. A few weeks ago people thought Korea might become the fifth largest by the end of the year but the extreme euphoric sentiment is pushing it ahead far sooner than expected. Now it looks like Korea might challenge Japan for the no. 3 spot in a few months. Keep in mind that Japan’s population is 2.5 times bigger and their economy is two times bigger.

I don’t think it’s some dot com type bubble because Korean companies have been earning huge rather than just being speculations. Samsung and Hynix had record Q1s and are expected to become the most profitable companies in the world in the next three years. Other companies like Hyundai, HD, Hanwha are all doing very well in their own segments although they’re not in some stratospheric territory like Samsung/SK. I think Korean companies were very undervalued for a while and I’m glad people are finally seeing their worth but the speed at which they’re being rerated is what’s concerning.

I got in the rally relatively late but even then my portfolio has still significantly grown. But if this rally is mostly driven by retail investors like me, it could be concerning.

I think the math checks out for now… if Korean corporate profits do meet the expected 600-700 billion dollar range this year then a 10-14 trillion dollar market cap could be justified. But who knows, if Trump starts WW3 or China invades Taiwan then it could disappear even quicker.

How are you guys riding this?

submitted by /u/Bursanich
[link] [comments]

Latest News from Korea

Latest Entertainment from Korea

Learn People & History of Korea