Key points of the video

Larry Fink said that if construction of AI data centers stops abruptly, the risk of a recession could grow. After this remark, data center-related companies fell sharply over the course of a week.

The host questioned whether a halt in data center construction would lead directly to a recession. Talk of data center halts has come up many times before due to environmental concerns, resident opposition, and water shortages, so the key question is whether this can be treated as clear evidence of a recession.

Jang Woo-jin gave the example of a shop owner in front of Samsung Electronics who says Samsung's employees are the only ones eating well and that the company should just collapse. If Samsung Electronics really falls, sales at nearby shops will inevitably shrink as well.

He explained that the rise in bond yields means the market is pricing a 50% probability of the company defaulting within five years. The issue coupon was 9.625%, but it has now risen to 15%, and the bond price has fallen nearly 80% from its face value of $1.

Overnight, Elon Musk mentioned Micron and posted a comment saying memory prices are absurdly high. Musk said customers will not forget this and that Micron is making a wise choice to secure long-term customer loyalty.

Jang's view is that there is no need to sell in a hurry at this level. The memory decline can be read as profit-taking after a big run-up, but some argue that a price that was once a tailwind is now becoming a headwind for many players and could come back to hurt.

He bought 120% of his portfolio today. Some of it was bought on margin, and he said he is also considering additional purchases if forced margin liquidations occur tomorrow.

What worries him more is the annualized revenue of $65 billion released at the end of July. This figure multiplies the most recent monthly revenue by 12 to project future sales, and some interpret it as showing that the forecast was set higher than reality when compared with third-quarter revenue multiplied by four.

The CPI shock and the credit crisis at CoreWeave compounded, and the market kept sliding. The host interpreted that most of the bad news had already come out.

Comments were overheated with fear, saying it will fall further and to run away. Jang said that after a decline of about 20%, it is not yet time to conclude that prices will drop sharply from here, and he recommended a calm response.

Selling well does not mean selling at a high price; it is a judgment about what you will do if you turn out to be wrong.

The government also said it would respond strictly to market manipulation.

Jang regards the shares he bought today as short-term trading inventory rather than long-term holdings. He said that if the index reaches around 6,000, he plans to sell 70 to 80 percent of what he bought today.

Attacks by the Houthis on Saudi Aramco facilities and concerns over a Red Sea blockade continue. Possible rises in European diesel prices and attacks on energy facilities in Ukraine and Russia were cited as factors fueling geopolitical unease.

Jang acknowledged that while today's coverage was full of negative news, Korea's market did fall a lot. He judges that the short-term decline was excessive and that the selloff has not yet been driven by AI-related credit issues in earnest.

Jang stressed that when liquidity is thin, risk management matters above all. He said he hopes viewers will experience through this episode that if you genuinely feel the risk and manage it well, the next opportunity will come.