“The prejudice that America’s big tech companies are shelters from the downtrend is breaking down.”
On the 26th (local time), when the US Nasdaq index plunged 3.95%, a domestic fund manager said: It was the biggest drop in one year and eight months. Seohak ants diligently headed to the US market last year. This is because, while the KOSPI index peaked in January last year and was locked in a long-term box, the Nasdaq index recorded new highs every day until November. The ‘Money Move’ accelerated due to the myth of American big tech invincibility and the metaverse craze.
The atmosphere has changed drastically this year. The sleepless nights of the Seohak ants continue. The New York stock market is also continuing to decline as bad news at home and abroad, including the Ukraine war and the blockade of China, are pouring on concerns regarding the US central bank (Fed) tightening. Middle school ants, who turned their eyes to the Chinese market, are also suffering losses as the US market is sluggish.
○ U.S. growth stocks plunged
The Nasdaq Composite is down 23% as of the 26th from its peak in November last year. Seohak ants betting on leveraged products took a direct hit.
‘ProShares Ultra Pro QQQ ETF (TQQQ)’ is the top net buying stock by Seohak Ants in Korea. It tracks three times the daily fluctuations of the Nasdaq Index. Investors who invested in this product lost 54% compared to the beginning of the year. The second stock, ‘Direction Daily Semiconductor 3X ETF (SOXL)’, is more serious. This product, which tracks the daily fluctuations of the Philadelphia Semiconductor Index three times, fell 67% from the beginning of the year.
The same goes for general stocks. Netflix(198.40 -5.48%)fell 67% compared to the beginning of the year. nvidia(187.88 -5.60%)Wow Tesla(876.42 -12.18%)fell 36% and 17%, respectively. same period Samsung(65,000 -1.66%)The decline for US tech companies is even greater when you consider that the stock is down 16%.
Shinhan Asset Management’s Alpha Management Center Director Jeong Seong-han said, “At the time of interest rate hikes, US big tech companies are falling in the order of their high valuations. Investors are holding on with ‘belief’ that US big tech companies will rise.
There are also situations in which good performance does not guarantee a share price rise. last 20 days Teslaannounced an ‘earnings surprise’ that far exceeded Wall Street expectations, but the stock price showed a downward trend and plummeted 12.18% in just one day on the 26th. alphabet(2,390.12 -3.04%)Inc. reported first-quarter revenue up 23% year-over-year, but fell 3.16% in following-hours trading as it fell short of Wall Street expectations.
○ China’s stock market has bottomed out
The situation of middle school ants is not much different. At the beginning of this year, when the Nasdaq index continued to decline, the market said that the Chinese market had bottomed out. After the Beijing Winter Olympics, China’s quarantine policy will change to ‘with Corona’, and expectations are growing that a full-fledged economic stimulus package will be released. Money began to flow into Chinese funds to contain the fall and overcapacity stocks.
Individual investors net bought 700 billion won worth of ‘TIGER China Electric Vehicle SOLACTIVE ETF’, a collection of Chinese electric vehicle-related stocks from the beginning of the year to the 26th.
However, the Chinese government’s ‘zero corona’ prevention policy has been strengthened. Following Shanghai, stocks plunged on concerns over Beijing’s lockdown. The TIGER China Electric Vehicle ETF is down 29% from the beginning of the year. Among the top stocks by individual net buying, from the beginning of the year to the 26th, Kangbong Lithium plunged 35%, BYD 14%, Angel Advanced Materials 42%, and Guy 49%. Hong Kong-listed Alibaba, Geely and Tencent also fell 29%, 47% and 24%, respectively.
However, there are also signs that the Chinese stock market is bottoming out. As growth stocks such as batteries rebounded on the 27th, the Shanghai Composite Index rose 2.49%.
Kim Kyung-hwan, head of the emerging market investment strategy team at Hana Financial Investment, said, “The Chinese market rebounded as expectations for the easing of the lockdown in Shanghai and the normalization of factory operation and logistics movement came out.”
Reporter Ko Jae-yeon/Seo Hyeong-gyo [email protected]