[매경데스크] Leaving Donghak Ant’s First Year-Maeil Economy

– It’s an old stock quote that a local barber should sell stock when talking about the stock market. When everyone’s interest in investing in stocks rises, it is interpreted as a sign that the market is overheating. The first year of the Donghak Ant Movement is just that. Housewives and students who weren’t interested in investing in stocks in their lifetime open stock accounts and join the ranks of investment.

This is proved by numbers. Recently, Maeil Economic Daily looked at Kiwoom Securities’ personal stock account to diagnose the current status of the’ant fever’. By the beginning of December this year, there were 20.2 million new accounts, more than four times that of last year (465,000). Lee Hyun, president of Kiwoom Securities, was surprised, saying, “The number of new accounts that have increased this year is more than the sum of the last five years.” The number of stock accounts created by 2030 generations was 1.05 million, accounting for more than half of all new accounts. It means that the so-called’Jurin’ has increased rapidly. Young generations frustrated by the surge in real estate prices, and telecommuters due to the spread of Corona 19 have stepped on the stock market one after another.

If so, is it the time to watch out for the stock market now, when everyone is rushing? Not only for investors, but for those who feel alienated because they have not yet joined the stock market. Some say, “Fear when others are greedy and be greedy when others are overwhelmed by fear,” referring to Warren Buffett’s quote, “Investment Geek”, saying that they will wait for the next correction. It will be decided during next year which judgment is correct.

It should be noted that the stock market has changed. Until the end of the year, there were many aspects of “panic cell” in which foreigners and institutions threw stocks to threw stocks and ants also participated in the selling procession. I tapped. This year, foreigners net sold more than 1 trillion won on six occasions: March 9, 13, 17, August 31, November 30, and December 10. Individuals resisted the shock of selling foreigners every time. The highlight of the case of an ant that became a support was on the 30th of last month. When foreigners net sold 2.4 trillion won in the securities market (the highest since 1999), individual investors net bought 2.2 trillion won worth. It is a clear example showing that individuals are not attracted to the supply and demand of foreigners and institutions.

What is the return on investment of individuals who swept stocks in a plunge? On March 17, when the KOSPI fell toward the lowest point due to mass foreign sales, it is assumed that Hyundai Motor Company’s stocks were bought and held, and the yield exceeded 130%. If you bought LG Chem stock on March 9th, it would have a return of 120%.

Ants who were looking for theme stocks aiming for a jackpot profit showed a very different investment pattern this year. Looking at the’Top 10 net buying stocks’ by individuals this year, a significant number of top stocks in market capitalization, such as Samsung Electronics, Hyundai Motors, Naver, Kakao, and SK Hynix, were found. The ant’s financial power has also increased. The proportion of individuals in domestic stock trading value increased to 75% in July-September this year. In December of last year, it was around 60%. It is difficult to unequivocally explain the behavior of individual investors, but it is clear that a phenomenon different from previous years is taking place.

Nevertheless, at this point, it is necessary to think over the adage of stock investment. The KOSPI rose by 90% from its annual low in March this year. I’d like to finally get out of the damn “boxpi” (a compound word of box-kwon and KOSPI), but concerns over short-term overheating are growing. Jaya’s stock-goers advise, “Look far, deep.” It is a mandate to thoroughly study the stocks to be invested with at least three years’ perspective, rather than struggling with the ups and downs of the market. Stock market experts say, “If you are an ordinary investor, it is enough to choose only 3 or 4 companies.” In the end, it is still the investment principle of Geumgwaokjo to stay away from’super-dancing’ or’brain trafficking’. I hope that more smart ants will grow as the leading players in the Korean stock market next year beyond the first year of the Donghak Ant Movement.

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