- The author argues Korean equities are not merely cheap but trapped: weak dividends and buybacks, governance conflicts, and recurring dilution can keep valuations depressed.
- Even strong operating performance may not benefit shareholders when profits are diverted through controlling-family structures, rights offerings, convertible bonds, or spin-offs and relistings.
- The key test is whether corporate value reaches investors, not whether P/B or P/E is low; absent structural reform, the author views Korean stocks as swing-trading vehicles rather than long-term holdings.
Investment pitches
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61 68 - JPMorgan remains bullish on U.S. equities and overweight technology companies with strong earnings, arguing the three bear cases do not yet end the uptrend.
- A Democratic midterm sweep has a 62% Polymarket probability and could weaken Trump’s policy momentum, fiscal expansion, and growth; JPMorgan views any post-election correction as a buying opportunity.
- Higher yields reflect AI investment and fiscal-led growth as well as pressure on borrowers; with the 10-year near 5.25% attracting buyers, rates may be approaching a peak.
- The key test is AI profitability: five U.S. cloud companies’ AI capex is forecast at $1.21T in 2027 and $1.48T in 2028, while token usage and ARR over the next 1–2 years must validate demand.