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- Hacker News
- oh those poor rich people that lost a bet, I feel so sad for them :(by one33seven
- These aren't rich people, this movement is almost entirely fueled by young people. Educate yourself more before thinking this is reddit.by Craighead
- It's all relative, you seem to think that rich people can't get "as depressed" as poor people but you are genuinely wrong, rich people also commit suicide, money isn't everything and for the most part, people have worked quite hard and smartly to become rich, such a basic take.
PS (ready for the downvotes): A ton of people are not wealthy by choice as well, I don't want to over generalize because this isn't true for all, but a LOT could master a new topic every month by just stopping Instagram for 1 hour a day and instead use that time to study and make money, so what, if they start in the direction of building wealth, suddenly they are assholes?
- From my very shallow understanding of the Korean market it's common to invest in high risk shares because a big win is the only way to afford a nice home. Financial nihilism, risk appetite etc. So it's far from only rich people.by duttish
- Small retail investors comprise 66% of the market in SK. It's usually single unmarried people who make ridiculously big bets to try and get enough money to buy a house or get married. It's something to be pitied not hated.by drumhead
- Hyped Korean techbros went from “Let’s gooo!” to “Aww nooooooo!” faster than a StarCraft 2 matchby reddguard
- faster than a zergling early base rush.by aruametello
- Bursting??
- They set off circuit breakers for KOSPI twice in two days.by yifanl
- No chart in the article, huh? Strange, that.
Kospi is up 72% year over year: https://www.google.com/finance/beta/quote/KOSPI:KRX?window=1...
It's up 30% year-to-date. It's even up 13% over the last six months.
The same is true for Samsung, except the numbers are even larger (in the green direction). Sure there must be people who screwed themselves in the short term, but this doesn't look like reasonably careful investors have anything to cry about as of right now.
by derdi - >bursts
so it's bursting now?
by sznio - This article's comment section made me discover the hilarious "No crying in the casino" meme words, thanks.
- Gamblers shouldn't expect to win all the time.by smcg
- Some seem to expect governments to save them, which worked in 2008.by piyuv
- - why is everyone suddenly selling
- what changed in the last week that did not change in the last 6 months?
by vivzkestrel - Markets don’t always need an external change to drop. Sometimes it’s just part of the same price discovery process that ran the price up early on.by qgin
- > why is everyone suddenly selling
1. Korean equities have been undervalued in comparison to Asian peers for a couple decades.
2. A couple Asia targeted funds began hedging ASEAN, China, and India equity risk by purchasing discounted Korean equities around 18-24 months ago.
3. This influx of capital along with South Korea's lack of regulation around retail investing led to the KOSPI rally.
4. Now that experienced funds are rebalancing, many retail investors that participated in the rally with limited knowledge got caught with their shirts off.
> what changed in the last week that did not change in the last 6 months
Larger emerging market and Asia funds that began the KOSPI arbitrage have hit internal metrics like IRR in the 20% range and are now rebalancing.
There's a reason South Korea is still classified as an "emerging market" in most risk indices despite being a developed economy.
by alephnerd - by scrlk
- > nearly half of its 880,000 clients who bought Samsung shares were now sitting on losses, while nearly 70 per cent of its 408,000 investors in SK Hynix were also in the red.
> Margin debt, which hit a record Won38.6tn ($27bn) last month as investors borrowed to amplify bets, has dropped to Won33.2tn after a wave of forced liquidations during the recent rout.
Looks like there is a lot of leverage left.
- How tightly regulated is investment margin lending in the US?by evolve2k
- > Part of the problem was regulators’ decision in late May to approve 16 single-stock leveraged ETFs tracking Samsung and SK Hynix, which have been blamed for amplifying moves in indices and individual stocks.
Baffling that this was approved, though less so if you don't assume the regulator has the general market participant's interests in mind
- yes, baffling regulators would regulate the things that are irregular.by cyanydeez
- we watched them change the rules in the US to force indexers to provide exit liquidity for the spacex IPO blunder via your dad's 401k. capturing the regulators is just part of what finance does.
- Almost everything about society gets less baffling when you drop the assumption that power has any interest in wellbeing.