Thursday, March 4, 2021

Talk about individual investors in the stock market.

The COVID-19 crisis has gone on for over a year. It has taken a toll on the economy. Early last year, Korea's stock market took a direct hit as a result. Korea's KOSPI index took a nosedive to 1,400 points in March of 2020, the lowest of the year.

But after that, stock prices started to bounce back quite quickly. By December of 2020, the index set a new record at 2,800 points. In just nine months, the stock index more than doubled. The bull market is continuing in 2021 as well.

This upward trend of the stock market was mainly driven by a large number of new individual inverstors. A new term was coined to refer to these investors ; 'Donghak ants'. It was likened to the Donghak Peasant Movement from Korea's history. These individual investors were gung-ho about buying up stocks and this spurred on the rise in stock prices.

A lot more people I know are investing in stocks.

You're right. There are a lot more than before.

Some people even take out loans to invest.

I think that's because it's a bull market now.

But I think investing with borrowed money is too high a risk.

Yeah. After all, there are no capital guarantee in stocks.