SEOUL, Jan. 8 (Korea Bizwire) — As more individual investors are jumping into the investment game this year, the coronavirus pandemic is changing the landscape of how they carry out investment.
While it was a common practice among retail investors to sell exchange traded funds (ETFs) while betting on how the index will turn out or investing in theme stocks for a short-term profit, new investors tend to be more reserved.
“They did their studies on YouTube and other channels. They can tolerate short-term losses as they aim for a long-term profit,” said Kim Nam-ki, head of ETF Management at Mirae Asset Daewoo Co.
Despite the overheated stock market, individual investors continue to purchase stocks from innovative companies with high growth potential as they aim for long-term investment.
Concerns over individual investors borrowing money for investment, however, are still a considerable social problem.
As of Tuesday, retail investors were found to have borrowed as much as 19.6 trillion won (US$17.9 billion) from securities firms to invest in the stock market, doubling in the last 12 months.
Nevertheless, many investors feel that investment is the only way to overcome the current situation, despite the debt.
“It is a time where both employment and the future look grim. They are all for investment feeling obligated to at least protect their assets from the risk of currency devaluation,” said Kim Hyung-ryeol, head of the research center at Kyobo Securities Co.
“This is probably why stocks as well as real estate prices continue to rise despite heavy government restrictions.”
H. M. Kang (email@example.com)