I don't think the artificial intelligence (AI) bubble has arrived yet. The idea of not investing and holding cash because a crisis might come will never succeed
Bae Jae-gyu, head of Korea Investment Management, said this at the third-anniversary seminar for the "Korea Investment TDF Alaseo ETF Focus" series held at the Conrad Hotel in Yeouido, Seoul, on the 5th, noting, The price-earnings ratio (PER) is in the 20–30 times range, so it's not a bubble. Even if a bubble comes, you just need to avoid failing at that stage, and stated accordingly.
Bae mentioned the sharp drop in the KOSPI market that morning and stressed that investment in AI big tech corporations should continue. In particular, he advised investing in corporations that supply AI Semiconductor.
He explained that when past booms in railroads and the internet burst, corporations that supplied steel to railroad companies or delivered semiconductors to internet companies were relatively less affected. Even if a bubble bursts, if you invest in corporations that form the foundation of the industry, there is no need to fear a steep plunge.
Bae said, Railroads were introduced, competition heated up on the belief the railroad business had a future, and some companies went under when the bubble burst. But the people who sold steel to railroad companies won.
He added, There are corporations that succeed and corporations that fail, but we should think about the corporations that supply them with goods. In the railroad era, there were people who supplied steel. In the internet era, semiconductors needed for the internet, and in the AI era, corporations supply AI Semiconductor.
However, he pointed out that if investors concentrate solely on a specific theme such as AI big tech, volatility increases and it becomes difficult for individual investors to endure. He advised, Invest in leading stocks that create wealth amid changing market trends, and if you properly mix target date funds (TDF) into your portfolio, you can respond stably even in crisis situations.
Meanwhile, Korea Investment Management held a retirement pension seminar on the day to mark the third anniversary of the launch of the target date fund (TDF) product "Korea Investment TDF Alaseo ETF Focus Fund." It presented effective pension management strategies amid a changing retirement environment and shared the performance and management know-how of the "TDF Alaseo ETF Focus Fund" over the past three years.