Meme-Stock Cycles Get Shorter as Margin Loans Surge in Korea
- Signs of overheating in Kosdaq on retail inflows, Goldman says
- Short rally of meme stocks over changing themes may continue
South Korean retail investors are cycling through meme stocks so quickly that it’s alarming regulators.
In the span of eight weeks, they’ve driven short-lived rallies in the superconductor, salt and seafood sectors, following a months-long frenzy over anything related to EV batteries. The risks of margin calls is high, and leverage is worrying, Goldman Sachs Group analysts said.
Up Next
Meme-Stock Cycles Get Shorter as Margin Loans Surge in Korea