KOSPI breaks 3,000 points
Posted : 2021-01-07 16:06
Retail investors should be cautious in overheated market
Korea s stock price index surpassed 3,000 points Thursday for the first time in the bourse s 38-year history. A combination of factors pushed the KOSPI into untrodden territory, such as abundant liquidity thanks to the government s massive release of fiscal funding to help overcome the impact of COVID-19; a craze among individual investors, seen as acting like a colony of ants ; and an optimistic outlook on high-tech industries such as secondary batteries, biopharmaceuticals and electric vehicles.
However, this is the time for retail investors to listen to warnings against the market s unprecedented steep surge. It is unusual for the finance ministry and the central bank to simultaneously issue a warning on the gulf between the stock market and the real economy. Particularly, individuals should refrain from investing in the stock market with borrowed money. The governm