Losses for Inverse ETF Investors and Shifts in Market Projections
Inverse ETF investors are experiencing significant losses amid the recent strength of the domestic stock market. The rise of the KOSPI 200 and KOSDAQ 150 futures indices has resulted in declines for ETFs like KODEX 200 Futures Inverse 2X and KODEX Inverse. Investors who bet on a decrease in stock prices, including individual investors, have suffered considerable losses over the past five trading days. Notably, the KODEX 200 Futures Inverse 2X has recorded a loss of about -25.32%, and the KODEX Inverse has a -13.3% loss.
Experts warn against holding inverse ETFs for the long term, highlighting the possibility of ongoing medium-to-long-term gains in the indices. Furthermore, with ongoing improvements in the performance of sectors like semiconductors and other major industries, several securities firms have raised their KOSPI targets.
Therefore, experts advise investors to focus not on the short-term market fluctuations but to pay more attention to broader economic conditions and improvements in corporate performance.
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