In an interview with the Korea Economic Daily on the 6th, John Lee, CEO of Meritz Asset Management, said, “It is important not to dwell on the KOSPI index breakthrough of 3000 and to continuously buy stocks.” / Reporter Kim Youngwoo [email protected]
On the 6th, CEO John Lee Meritz Asset Management evaluated the meaning of “the era of 3000 KOSPI index” as “the stock investment culture in Korea, which was at the level of 0, has now risen to about 4 points.” Not so long ago, stock investment was treated like gambling, but the number of individual investors has soared last year and the perspective has changed significantly. In fact, the number one contributor to the KOSPI index exceeding 3000 was the so-called’Donghak ants’ individual investors.
Representative John Lee is regarded as one of the representative figures who led this’stock popularization’ in the domestic market. Regarding the recent moves of CEO John Lee, such as appearing on YouTube and various TV entertainment programs, there are mixed evaluations inside and outside the industry, but there are many’Jurin’ who opened their eyes to investing in stocks for the first time. Even when the KOSPI index fell to the 1400 line in March last year, individual investors claimed to “buy stock” and called him “John Bong-jun”, claiming that he is the vanguard of the Donghak ant movement.
As the driving force behind the KOSPI index breakthrough of 3000, CEO John Lee first pointed out “the point that domestic stocks remained in the box for a long time.” “I was able to jump more explosively because the rising energy was pressed.”
After recovering from the 2000 line in December 2010, the KOSPI index showed a’boxy’ pattern after being trapped in 1800-2200 units for 5 years. At the end of October 2017, thanks to the booming global semiconductor industry, it crossed the 2500 line for the first time, but was unable to rise further due to the trade conflict between the US and China in 2018 and returned to the boxpe days. When the corona 19 was pushed down to the 1400 line last year, a large influx of investors led to an unusual boom, surpassing 2500 and 2600 to 3,000 at once. He described this as “a fire spewing out of the furnace.”
CEO John Lee emphasized that “Semiconductors such as Samsung Electronics are the leading players in the KOSPI index 3000.” The index surged in a short period of time is Samsung Electronics and SK Hynix, the number 1 and 2 companies in domestic stock market capitalization.(131,000 +0.38%) As the expectation of earnings improvement, centered on semiconductor companies such as such, is growing. When Samsung Electronics’ market capitalization (excluding preferred stocks) exceeded 500 trillion won, the KOSPI index also exceeded 3000. The securities industry is forecasting an estimated net profit of 115 trillion won to 140 trillion won this year in the securities market. Net profit in the securities market exceeded 100 trillion won only in 2017 and 2018 during the semiconductor boom.
He said, “The fact that companies with top market caps other than Samsung Electronics performed well in the corona 19 phase led to the report price.” LG Chem(890,000 -0.34%), Samsung SDI(680,000 -0.87%), SK Innovation(257,000 +5.33%) Not only companies related to rechargeable batteries such as Naver(290,000 -0.85%) cacao(395,500 +0.64%) Software company, POSCO(280,000 -1.75%) The strength of the stock prices of the mid-to-high and long-term industries also led the index to rise.
Don’t wait for exponents and keep buying
Representative John Lee pointed out that the biggest change in the domestic stock market that made the breakthrough of 3000 was’the beginning of a large number of young investors in their 20s and 30s’ in the stock market. He said, “In the past, when I gave stock lectures, I only had 60s or more, but at some point, it was noticeable that the number of young newlyweds in their twenties increased rapidly.” said.
About 60% of the stock accounts newly opened at major securities companies last year were 2030 households. The largest individual net purchase, approaching 64 trillion won, could be completed by participation in stock investment in the 20s and 30s.
Media and publishing trends changed as young investors viewed stocks positively and started investing. Bookstore bestsellers include a large number of books on stock investment, as well as weekend entertainment programs. Representative John Lee appeared on various popular TV programs such as’The Butler’ (SBS),’You Quiz on the Block’ (tvN), and’The Problem Son of the Rooftop Room’ (KBS) and said, “Buy stocks with money to buy coffee and drink. ”“Invest 10% of your salary in stocks” “Do not buy a house or car, but buy stocks”, encouraging young people to participate in stock investment.
He always advises investors, “If you buy stock, don’t sell it. “The younger the people, the more they bought and sold stocks, and they make short-term investments, but the market movement is unpredictable,” said John Lee. “I don’t think stocks will rise, so I have to buy because I want to.” The KOSPI index can be changed at any time, but it means that you should not dwell on the index and continue to buy and collect until old age.
Reporter Seol Ji-yeon/Yang Byung-hoon [email protected]