Terrifying! A 40% plunge in 6 weeks! The severity of the Korean stock market crash far exceeds that of historical financial crises in the US.

格隆汇2026/07/29 03:46

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```htmlGolden Finance July 29｜In just 11 weeks (from early April to June 19), the Korea Composite Stock Price Index (KOSPI) surged by 74%. This astonishing bull market pace is usually only seen in the crypto world (cryptocurrency) or in micro-cap stocks with extremely scarce liquidity. In Korea, nationwide share trading has become a trend, and retail investors collectively known as “Donghak Ants” are accustomed to using leveraged financing, sometimes several times the principal, to flock into popular sectors. When everyone buys with high leverage, massive funds push indices almost vertically in a “rocket-like” surge within a very short time.The fiercer the surge, the harsher the reversal! Subsequently, in just 6 weeks until now, the KOSPI plummeted 40% from its peak. Such a steep drop may be rooted in the previously accumulated massive high leverage. When stock prices began to fall, brokers triggered epic “forced liquidation” waves marketwide to control risk. Retail investors didn’t have time to add funds before facing a concentrated cascade of liquidations, causing the market to drop vertically.As the anchor for global asset pricing, if the S&P 500 were to experience an extreme Black Swan event of a 40% drop over 6 weeks, the bull market achievements, economic growth dividends, and corporate profit accumulation gained by the US stock market over the past 5 years would all evaporate in barely more than a month. In US stock market history, even during the global financial crisis triggered by Lehman Brothers’ bankruptcy in 2008 or the consecutive circuit breakers sparked by the COVID-19 outbreak in 2020, the worst decline phases never hit a 40% drop within just 6 weeks.```

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Rohit Sipahimalani, Chief Investment Officer at Temasek International, pointed out that as global markets head into next year, they face two major risks: the possible reversal of the investment boom in artificial intelligence (AI), and inflation driving up bond yields, which could in turn end the upward momentum in the stock market. He stated, "The fading of the AI investment boom is the biggest risk. We don't think it will happen immediately, but some turbulence may occur around 2027." Another major concern is "worries over inflation." He said, "Inflation is a risk, and along with changes in the interest rate environment, this means there could be a point where the stock market hits a certain threshold." He believes that together with the AI issue, these constitute the "two key risks in 2027" that he foresees.

智通财经•2026/10/07 04:51

Temasek CIO warns of two major risks in 2027: reversal of AI boom and inflation

Goldman Sachs expects S&P 500 constituent stocks to see a 27% year-on-year increase in quarterly profits in September.

As companies make massive investments in AI infrastructure, U.S. corporations are set to usher in another strong earnings season. According to Goldman Sachs, the S&P 500 companies are expected to report a 27% year-over-year increase in earnings for the September quarter, driven by firms at the core of the AI infrastructure boom. Ben Snider, Chief U.S. Equity Strategist at Goldman Sachs, stated, "Recent macroeconomic data and signals related to the AI investment frenzy show no indication that investment is slowing down." Manish Kabra, Chief U.S. Equity Strategist at Societe Generale, said that this will mark the third consecutive quarter with profit growth exceeding 25%, an unprecedented streak outside of the post-financial crisis recovery periods. Revenue is projected to grow by 12%. Steve Chiavarone, Chief Investment Officer for Federated Hermes Equities, pointed out that thanks to capital expenditures related to AI infrastructure, investors are witnessing "the best profit and margin growth in our lifetimes." He added, "The worries that have built up... will ultimately be shattered by strong earnings performance."

智通财经•2026/10/07 04:36

Goldman Sachs expects the AI boom to drive a 27% increase in S&P 500 component stocks' September quarter profits.

According to the Financial Times, robust AI spending signals another profitable earnings season in the US, offering potential gains for investors. Goldman Sachs predicts that, driven by companies at the heart of the AI infrastructure boom, S&P 500 component companies' earnings for the September quarter are expected to increase by 27% year-on-year.

智通财经•2026/10/07 04:31