Reason Why KOSPI have to go down in Long Term
1. First of all, reason why stock index of USA, China and other advanced countries getting more higher since 2016, is rising of the companies related to The Fourth Industrial Revolution. Meanwhile South Korea doesn't have any companies like that. (No AI,No Robot, Bio? recently one of bio company called Sillajen failed at the huge project which brings collapse to bio industry). In other words, South Korea lost the opportunity to get into the The Fourth Industrial Revolution. Most of big company of South Korea mainly deal with heavy chemical industry, Semiconductor industry and export industry. Except semiconductor, heavy chemical industry and export industry doesn't changed and developed for last 45 years. If there is no big game changer in both industries, there is no reason that KOSPI goes up.
2. Korea government's incompetent.
After the impeachment, socialist party successfully take the ruling party.(personally think they are more like communist). Most of high ranking executive fulfilled with activist group who doesn't know politics and that outcomes showing slowly by KOSPI index. Government failed at diplomacy that results trade war between Japan and getting export regulation about semiconductor part which is only potential industry for now. Moreover, government decided to spend tons of money to the sunlight generation which most advanced countries doesn't care, instead of giving subsidize to AI, Robot and Bio industry.
Because this is the first post written in English so overall content is poor. Any ideas and criticism is welcome.
1. First of all, reason why stock index of USA, China and other advanced countries getting more higher since 2016, is rising of the companies related to The Fourth Industrial Revolution. Meanwhile South Korea doesn't have any companies like that. (No AI,No Robot, Bio? recently one of bio company called Sillajen failed at the huge project which brings collapse to bio industry). In other words, South Korea lost the opportunity to get into the The Fourth Industrial Revolution. Most of big company of South Korea mainly deal with heavy chemical industry, Semiconductor industry and export industry. Except semiconductor, heavy chemical industry and export industry doesn't changed and developed for last 45 years. If there is no big game changer in both industries, there is no reason that KOSPI goes up.
2. Korea government's incompetent.
After the impeachment, socialist party successfully take the ruling party.(personally think they are more like communist). Most of high ranking executive fulfilled with activist group who doesn't know politics and that outcomes showing slowly by KOSPI index. Government failed at diplomacy that results trade war between Japan and getting export regulation about semiconductor part which is only potential industry for now. Moreover, government decided to spend tons of money to the sunlight generation which most advanced countries doesn't care, instead of giving subsidize to AI, Robot and Bio industry.
Because this is the first post written in English so overall content is poor. Any ideas and criticism is welcome.
Comment:
Hold your position until price touch the stop loss. Korean Institution about to hold the strong support line but that can't stop the defection of Korean industry economic.
Trade closed: stop reached