Buffett Invests 59 Trillion KRW… Will It Revitalize the Japanese Market?

Over the past week, the Dow Jones Index fell 1.9% and the S&P 500 fell 0.3%, showing an overall downward trend. The Nasdaq rose 0.9%, indicating strength primarily in growth stocks.

Sufe mentioned, "It was a week where value stocks fell and growth stocks rose." West Texas Intermediate (WTI) crude oil futures prices adjusted downwards to below $100 per barrel.

In the semiconductor sector, Sandisk and AMD rose, buoyed by Nvidia CEO Jensen Huang's projection of double sales next year. Google recorded a rebound for the fourth consecutive quarter due to increased AI search volume, and ChatGPT's market share dropping from 13% to 10% positively impacted Google.

The cybersecurity sector gained from the ripple effect of issues slowing AI development, showing strength with Cloudstrike rising 15%.

While its current dividend yield of 5.68% may be attractive, there is a possibility of further interest rate increases.

Sufe advised conservative investment, stating, "It has become a real victim of interest rate hikes. With talks of additional rate hikes, dividend stocks should still be viewed conservatively."

18 out of 19 committee members hinted at further interest rate increases, raising the possibility of two more hikes. The probability of an additional rate hike in October is predicted to be 53%.

Massive capital expenditure investments by big tech companies are identified as a major cause of long-term interest rate increases.

Usage recorded an astonishing year-over-year increase of 2,434%.

At the AI Infrastructure Summit, former President Donald Trump stated that fears of AI are exaggerated and that AI will become a larger industry than the internet. He emphasized that the winner in AI will hold future economic dominance, and that dominance must belong to the United States.

Jensen Huang, CEO of Nvidia, stressed that AI safety and development can go hand-in-hand, and infrastructure expansion is crucial.

This suggests an increased importance of land, power, and buildings.

Interest is growing in AIQ related to AI commercialization, GRID related to power infrastructure, and CBR ETFs related to cybersecurity. Shares of Japan's five major trading companies have seen approximately 59 trillion KRW invested by Warren Buffett, who has expressed his intention to make additional purchases.

Buffett appears to be employing a strategy that leverages Japan's weak yen and low interest rates to issue dollar bonds, then investing in Japanese trading companies to aim for both exchange rate gains and dividend income. These investments are raising expectations for a revitalization of the Japanese stock market.