Opportunities and Challenges Amid AI Stocks and Rate Uncertainty
Domestic investors are seizing the opportunity to buy AI-related stocks at discounted prices following recent overvaluation concerns. Notably, stocks like Direxion Daily Semiconductor Bull 3X ETF, Nvidia, and Meta Platforms are gaining attention. However, the diminishing expectation of US interest rate cuts and increasing market uncertainty serve as significant concerns.
As the uncertainty around the US Federal Reserve's monetary policy persists, the debate surrounding the AI bubble continues. Some Federal Reserve officials remain skeptical about rate cuts, leading to market sensitivity regarding possible interest rate fluctuations. Nonetheless, individual investors have shown strong confidence in the market's rise, particularly through robust buying activity in leveraged ETFs.
This week, 'KODEX Leverage' topped individual net purchases, with significant buying also observed in 'KODEX 200' and 'KODEX KOSDAQ150 Leverage.' On the contrary, inverse ETFs, which bet on market declines, were heavily sold, reflecting investors' optimism. Experts highlight the potential easing of uncertainty post the December FOMC meeting, advocating for proactive bargain hunting.
While volatility in the stock market is expected to persist in the short term, investors are adeptly utilizing this period as a buying opportunity. Experts advise patience and cautious strategies in response to uncertainties surrounding AI stocks and interest rate policies.
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