Leading Stocks and Response Strategies Amidst Sector Rotation

This is interpreted as a natural phenomenon occurring as opportunities are created for individuals to exit the market.

Market expectations recently declined after the Jackson Hole meeting, but New York Fed President Williams' caution against hawkish interpretations reversed market sentiment. He shared the view that interest rates are not an issue if growth is supported, positively impacting the market.

At the Jackson Hole meeting, discussions about AI far outnumbered hawkish stances on interest rate hikes. This demonstrates a widespread market recognition of the importance of growth.

The increase in chip company Micron's stock price fueled expectations for semiconductor earnings. This strengthened confidence is attracting buying by foreign and institutional investors into the Korean stock market.

It is a normal phenomenon for funds that have been tied up to sell off to gain breathing room in the market.

Individual investors selling large-cap stocks like Samsung Electronics does not mean they are completely leaving the stock market. As an environment is created for these funds to move to other sectors, it can be a starting point to anticipate sector rotation.

Issues related to options positions can increase market uncertainty. Therefore, rather than prematurely concluding a market bottom, it is important to observe the situation further while checking major economic indicators like CPI announcements.

We are now at the beginning of an AI market differentiated by performance and price, validating that the AI cycle is not yet over.

Currently, waiting funds holding cash are observing the bond market due to interest rate peak debates. Risk factors such as changes in US administration and Wall Street's stance also exist, so fund inflows are expected to become serious only after market uncertainty is resolved and interest rates stabilize.

In Q4, market risks exist, such as the possibility of Wall Street portfolio restructuring following the US presidential election results. However, market consensus indicates that the earnings growth of the AI industry is valid until 2028. Therefore, a strategy of actively buying AI-related stocks when prices fall may be effective.

It is risky to prematurely assume either front-end or back-end processes when investing in semiconductor materials, parts, and equipment. Instead, it is important to develop scenarios in advance to broadly prepare for which stocks will move based on specific news. In the front-end process, stock differentiation appears based on technological attractiveness and market share in China, while in the back-end process, proving specific technological capabilities like high-bandwidth memory (HBM) is crucial. Therefore, rather than building logic around a specific process, it is necessary to organize one's own scenarios for various stock groups.

Currently, KEPCO E&C is the leader, but other stocks like Orbitech often surge. Therefore, when investing in nuclear power-related stocks, while maintaining Doosan Enerbility's symbolic status, it is effective to include three to four stocks such as KEPCO E&C and Orbitech in the portfolio for diversification.

The termination of the nuclear phase-out policy has resolved industrial uncertainty, and the possibility of resolving Westinghouse patent issues and acquiring stakes is also being raised, maintaining a positive outlook.

Samsung C&T being selected as a strategic partner for a Swedish nuclear power project demonstrates Korea's competitiveness. Especially, the cooperation model between US Westinghouse and Korean nuclear power companies is being emphasized, which is expected to create a more favorable global order environment for Korea in the future.

Combining short-term trading with a long-term holding strategy is efficient for creating a regret-free investment timing.

Secondary battery and bio sectors are stocks that can rise unpredictably at any time, so it is necessary to focus on the trend of individual stocks rather than their correlation with the index.

In a volatile market, rather than a strategy of accurately predicting highs and lows, it is important to manage your account through a phased buying and selling strategy. This is effective as an insurance-like strategy to maintain investor psychological stability and diversify risk when predictions are wrong.