Despite Tesla's Stock Plunge, South Korean Investors Maintain ETF Investment
Despite a more than 40% decline from its peak, South Korean investors continue to actively invest in Tesla stock and related high-risk exchange-traded funds (ETFs). Over the past week, South Korean investors have net-bought Tesla stocks worth approximately $83 million, and the 'Direxion Daily TSLA Bull 2X Shares' ETF was purchased for about $105 million. This buying trend appears to be based on a dip-buying strategy in anticipation of a rebound in Tesla's stock price, yet the risk of losses in a highly volatile stock market is increasing.
The drop in Tesla's stock has been attributed to uncertainties stemming from Elon Musk's political maneuvers and decreased sales in Europe. According to Bloomberg, South Korean investors have shown significant interest in Tesla leverage ETFs listed in New York and London, indicating an increased investment in products with greater volatility. Experts caution that a careful approach is required when investing in such high-risk products.
Moreover, with an increase in investment deposit balances and margin trading in the domestic stock market, the investment enthusiasm remains vibrant. This suggests a trend of short-term funds flowing into risky assets, as investors continue to engage in high-risk, high-return strategies. Eugene Investment & Securities advises a more cautious investment strategy, emphasizing uncertainties related to CEO risks.
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