Viewpoint: Despite today’s sharp rally, South Korea’s stock market will struggle to quickly rebound to its previous highs.
2026.07.31 09:11:45
Prominent U.S. stock trader Ariel Hernandez noted in a post that excessive leverage in AI semiconductor stocks on South Korea’s stock market at the end of July sparked a sharp sell-off. After a brutal leverage liquidation, some traders were forced into liquidation, and the market is unlikely to stage a quick V-shaped rebound to the highs seen weeks ago. Hernandez cited this year’s earlier silver market leverage liquidation case to illustrate that once such a trend forms, it is often accompanied by increased seller supply and reduced willingness of new buyers to use leverage, typically not reversing rapidly—meaning it often takes months or even years for the market to approach its previous highs.
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