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Baffling that this was approved, though less so if you don't assume the regulator has the general market participant's interests in mind
Hyped Korean techbros went from “Let’s gooo!” to “Aww nooooooo!” faster than a StarCraft 2 match
Gamblers shouldn't expect to win all the time.
Some seem to expect governments to save them, which worked in 2008.
If 100 people play a parlor game which the ratings agency has given"80% chance of winning", and 70% lose money instead...
Kospi is up 72% year over year: https://www.google.com/finance/beta/quote/KOSPI:KRX?window=1...
It's up 30% year-to-date. It's even up 13% over the last six months.
The same is true for Samsung, except the numbers are even larger (in the green direction). Sure there must be people who screwed themselves in the short term, but this doesn't look like reasonably careful investors have anything to cry about as of right now.
> Part of the problem was regulators’ decision in late May to approve 16 single-stock leveraged ETFs tracking Samsung and SK Hynix, which have been blamed for amplifying moves in indices and individual stocks. Baffling that this was approved, though less so if you don't assume the regulator has the general market participant's interests in mind
- what changed in the last week that did not change in the last 6 months?
> Part of the problem was regulators’ decision in late May to approve 16 single-stock leveraged ETFs tracking Samsung and SK Hynix, which have been blamed for amplifying moves in indices and individual stocks. Baffling that this was approved, though less so if you don't assume the regulator has the general market participant's interests in mind
- why is everyone suddenly selling - what changed in the last week that did not change in the last 6 months?
1. Korean equities have been undervalued in comparison to Asian peers for a couple decades.
2. A couple Asia targeted funds began hedging ASEAN, China, and India equity risk by purchasing discounted Korean equities around 18-24 months ago.
3. This influx of capital along with South Korea's lack of regulation around retail investing led to the KOSPI rally.
4. Now that experienced funds are rebalancing, many retail investors that participated in the rally with limited knowledge got caught with their shirts off.
> what changed in the last week that did not change in the last 6 months
Larger emerging market and Asia funds that began the KOSPI arbitrage have hit internal metrics like IRR in the 20% range and are now rebalancing.
There's a reason South Korea is still classified as an "emerging market" in most risk indices despite being a developed economy.
- why is everyone suddenly selling - what changed in the last week that did not change in the last 6 months?