The South Korean retiree, who in 2000 left a 16-year career as an import-export clothing trader, had been watching the country’s stock market surge from its March lows on a wave of easy money. “I was bored, and many people around me were making profits from stock trading,” says Kim, a wheelchair user and the grandfather of a toddler. “I was hoping to make some quick cash for my family and that I could use to travel or dine at nice restaurants.”
It was a text message promising “20% returns guaranteed” if Kim joined an online stock-tipping club that lured him back into the stock market. He took the plunge at the end of July, forking out the equivalent of $5,000 to join the club and placing a call to his broker for the first time in seven years. By late September, Kim had invested $30,000 of his savings into the market, based on the club’s tips. His portfolio was down 10%; the South Korean stock market was up by the same amount. “That stock-tipping club really fooled me by their impressive sales pitch and guarantee of profits,” he says.
Kim, who lives with his wife and one son in Yongin, a city south of Seoul, exemplifies the rush to stock trading by a new kind of retail investor in South Korea in 2020. Known as “ants” because they invest in colonies but have little influence on the big conglomerates that dominate the economy, small investors like Kim have entered the market as policymakers responded to the coronavirus pandemic with a flood of easy money. Central banks around the world, including the Bank of Korea, followed moves by the U.S. Federal Reserve in March to cut interest rates and buy bonds to stabilize markets.
Denne historien er fra February - March 2021-utgaven av Bloomberg Markets.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February - March 2021-utgaven av Bloomberg Markets.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
See Which Countries Are Falling Behind On Climate Change
Under the Paris Agreement, 190 countries and the European Union pledged to take steps to hold the global temperature rise to less than 2C (3.6F) from preindustrial levels—and preferably 1.5C.
Billionaires Vie for the Future of Brazilian Finance
An escalating battle between two billionaires is upending the financial community in São Paulo, Latin America’s wealthiest city.
Ford Foundation's Darren Walker: ‘We Have to Get Uncomfortable'
DARREN WALKER, 62, disrupted his Wall Street life more than 25 years ago when he left what is now UBS Group AG to volunteer at a school and eventually pursue a career in community development and philanthropy. Since 2013 he’s been at the pinnacle of the philanthropic world as president of the Ford Foundation, created by the family of automaker Henry Ford during the Great Depression to advance human welfare.
Fueling the Ener Transition
I MAY BE BIASED, but some of the most important research and data on the Bloomberg terminal lies in one of its lesser-known functions: {BNEF }
Dig Into Analysts' Estimates for Disruptive Companies
THE PANDEMIC ERA generated a whole wave of disruptive companies as it accelerated the introduction of new products and services in areas including artificial intelligence, digitization, electronic payments, online meeting platforms, and virtual currencies.
Climate Risks Come for Sovereign Credit
FOR YEARS climate scientists have warned about the ferocious wildfires and hurricanes that are now overwhelming many communities. Today alarms are ringing about a related financial danger: risks lurking within government bonds, the biggest part of the global debt market.
Responsible-Investing Pioneer Lydenberg Says ESG Needs An Upgrade
STEVE LYDENBERG’S passion for social change was inspired by anti-Vietnam War demonstrations, consumer boycotts, and the movement to divest from apartheid South Africa. But he didn’t take to the streets. Instead, Lydenberg turned to the world of finance to help catalyze societal change.
Engine No. 1's Grancio: ‘People Will Appreciate an Economic Argument'
ENGINE NO. 1 sent shock waves across corporate America in May when the fledgling investment firm won a boardroom battle with Exxon Mobil Corp., securing three seats on the oil and gas giant’s board after purchasing only about $40 million of its stock.
Find Out Which Companies May Ramp Up Payouts After Covid
AS THE PANDEMIC DISRUPTED business last year, many companies cut or suspended dividends. Which will boost their payouts when economies pick up again?
Get Into the Minds of Central Bankers as They Navigate Shocks
HAVE YOU EVER WONDERED how central bankers forecast the impact of shocks on the economy?
