Representative of John Lee Meritz Asset Management.“Many investors are proud of the high returns last year. The immediate returns are meaningless. Investment is like a marathon. You shouldn’t be content with being just 50m ahead of the starting line. Set long-term goals and take a long breath. You have to invest with it.”
John Lee Meritz Asset Management CEO, who is called the head of the Donghak Ant Movement, gave such advice to individual investors in an interview with Maekyung.com on December 31 last year. Under the philosophy of’long-term investment’, CEO Jon-ri explained that instead of struggling with short-term profits, we should steadily invest in funds to bring in assets. In particular, as the stock market rose sharply last year, the desire to realize profits is increasing, but investment should be approached from a long-term perspective with a clear goal set. In addition, the outlook for the stock market this year is also expected to be favorable, so it is recommended to continue to buy stocks.
Representative John Lee, who has been advocating the nationwide stock investment movement since the past, evaluated the stock market as a “year of turbulence” in 2020. In the meantime, the perception that stock investment should not be considered negatively has been prevalent in Korea, but now the perception has changed positively, centered on the younger generation, and it is the reason that many investors have newly entered the market and gained vitality. “Last year will be remembered as a meaningful year in the history of the domestic capital market as the first year when our people realized the value of money and true capitalism,” said John Lee. “If I invest in stocks, I can also become rich, prepare for old age, etc.” It was a year that gave me confidence.”
◆ I can’t pay for the market
When the KOSPI index fell to around 1400 in March last year, a large number of individual investors, mainly young people in 2030, entered the market. However, as the index quickly approaches the 2900 line, more and more investors are thinking about when to realize profits. Regarding this, CEO Jon-ri cut and said,’Never sell it.’ He explained, “Investing in stocks is not done to make a quick break, but to collect old funds,” he said. “It is speculation, not investments, that weighing the timing of selling stocks while working on the market conditions.” As for the specific timing of the sale, he added, “You can think of finding it after the age of 60.”
Securities market predicts that this year’s KOSPI will be able to achieve 3000 points for the first time ever. The same goes for CEO John Lee. Although it did not suggest a specific band, it was positive about the market outlook. However, he advised that a good company should be chosen separately from the index.
“I still believe that the KOSPI can go beyond 3000 to 5,000, 10,000 points in the long run,” said John Lee. “However, no matter how much the KOSPI rises, it is meaningless unless the stocks he owns rises, so companies or investments currently investing “It is necessary to carefully examine whether companies that are willing to do so are consistently performing and whether their corporate governance is safe.”
It is explained that the market cap will naturally increase as the company’s sales and profits increase steadily. For this reason, it was explained that simply because a company’s stock price rose, it should not be sold hastily, and that there is absolutely no reason to sell while the company is making good money.
◆ Inflation and interest rate threats this year
Inflation and interest rates were cited as factors that would threaten the stock market this year. We believe that if the global economy recovers faster than expected, it could be bad news for the stock market. “Inflation and interest rates are the most sensitive to stocks,” said John Lee. “In the case of last year, as the global economy slumped due to the spread of Corona 19, inflation did not occur and stocks rose significantly as the low interest rate was maintained.”
However, if the economy recovers rapidly this year, interest rates rise and inflation also rises, it is expected that risk aversion sentiment will increase. In other words, it is an opinion that the threat factor will come from problems arising from the improvement of the economy.
Finally, he also sent a loving request to ant investors, who were the main characters of the stock market last year. He said, “Investing in stocks should have a clear goal of’preparing for retirement.'”
He added, “As there is a saying,’It is not your fault to be poor when you are young, but it is your fault to be poor when you are old.'” He said, “More than 10% of the monthly salary is actively invested in stocks. It should be done, and when the stock price falls, keep buying stocks by using a low-cost buying strategy.”
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