Rising Interest Rates: Opportunities in the Stock Market?

This is a measure to manage risk in preparation for market uncertainties. Nevertheless, he added that expectations for SK Hynix's stock price increase remain valid.

He stressed the need for a staggered selling strategy, disposing of shares gradually as the stock price rises. This is because attempting to sell at the absolute peak in one go often leads to missing the optimal selling point.

The recent drop in oil prices is attributed to changes in the Middle East situation. Discussions indicated that Iran would refrain from attacking neighboring countries, and news emerged that Gulf states might reach an agreement regarding the Strait of Hormuz next Monday. This signifies a move to seek self-优先 solutions, no longer trusting the U.S., and the decline in oil prices has positively impacted market sentiment.

Current oil prices are analyzed to be entering a technical overshooting phase. Department Head Yoo mentioned, "It's about to enter the final shooting, overshooting phase," raising the possibility of a trend inflection point due to the steep ascent. He diagnosed that the end of the upward trend is imminent, though the final peak, whether at $104, $110, or $120, remains uncertain.

Department Head Yoo explained that rent accounts for the largest portion when analyzing the core Consumer Price Index (CPI). He stated, "Rent makes up a large part, so I don't think rent will sharply increase," forecasting that the CPI would come out at a moderate level due to the low likelihood of a sharp rise in rents. Although there is a time lag for past Producer Price Index (PPI) increases to be reflected in CPI, he believes that sharp inflationary pressure is limited in the current situation.

He added that changes like website redesigns are merely user adaptation issues and do not directly affect profitability.

He stated, "First, if it drops, I buy. If it dips, I buy. If it drops a lot, I buy aggressively. I'm considering buying aggressively from below 2,670," indicating that he would consider aggressive buying below the KOSPI 2,670 point. He analyzed that declines due to interest rate noise are likely to recover quickly, and drawing parallels to the dot-com bubble, he noted that rising interest rates do not immediately lead to a market collapse.

Department Head Yoo emphasized that the recent rise in 30-year Treasury yields does not immediately signify a market collapse. He said, "Will big tech companies stop investing just because interest rates rise a little? No, that's not it," analyzing that changes in interest rate levels will not lead to a halt in big tech investments. Comparing current trends with interest rate hikes and stock movements before the dot-com bubble, he explained that current focus should be on the sustained investment of big tech companies.

Department Head Yoo explained, "Earnings and stock prices are rising together, but earnings are going up more," pointing out the difference from the dot-com bubble era when only stock prices rose sharply. He predicted that the stock price now needs to catch up with the rise in earnings, and if earnings are sustained, a quick rebound after a correction is possible.

Department Head Yoo expected market corrections to be short and rebounds to be strong. He stated, "Even if a correction comes, it will be short, and the rebound can be strong," diagnosing that although there have been four consecutive days of decline recently, it is not a crash. A temporary correction of 2-3% is anticipated, and he stressed the need for an aggressive buying strategy if market cracks appear.

The market currently has an extremely concentrated short position, betting on declines. Department Head Yoo pointed out, "Short positions are quite extremely concentrated," indicating highly negative market sentiment. He analyzed that if these short positions are covered, the market rebound could gain strong momentum.

Department Head Yoo predicted that the semiconductor sector's upward trend remains valid and could accelerate even more strongly after Chuseok. He stated, "I believe the semiconductor period hasn't ended yet. Rather, after Chuseok, semiconductors might accelerate even more strongly," seeing Micron's earnings announcement on September 30 as a crucial turning point for the semiconductor market. He recommended a portfolio shift focusing on Samsung Electronics and SK Hynix, and suggested diversification into the nuclear power and energy sectors.

He explained, "When interest rates rise, dividend investments are often sought when rates are low, looking for stable returns through high-dividend stocks." He pointed out that rising interest rates make regular savings accounts more attractive. With an increasing number of stocks yielding less than 5% dividends, and high-dividend or preferred stocks tending to show relative weakness, he advised a cautious approach to year-end dividend investments.