40% of High-Net-Worth Individuals Expect KOSPI to Exceed 2,800 This Year

40% of High-Net-Worth Koreans Expect KOSPI to Exceed 2,800 This Year
Interest Rate Cuts, U.S. Election, and AI Seen as Key Market Drivers
Majority Plan Diversified Portfolios and Increased Equity Allocation
"Prepare for Future Crises Even in Stability" Emerges as Sentiment of the Year

Among domestic high-net-worth individuals with assets of at least 3 billion KRW, approximately 40% expect the KOSPI index to exceed 2,800 this year.

On January 2, Samsung Securities announced the results of its survey titled "2024 Stock Market Outlook and Investment Plans," conducted among 368 SNI clients with assets of 3 billion KRW or more. The findings reflected these expectations.

Among all respondents, 34.2% selected the 2,800-3,000 point range when asked about their expected KOSPI index band for the new year. Another 6.5% predicted the index would surpass 3,000 points. Meanwhile, 38.6% anticipated a range of 2,600-2,800 points. As for the optimal timing to purchase stocks, 52% chose the first quarter, followed by 28% for the second quarter, 13% for the third quarter, and 7% for the fourth quarter.

When asked about the most important topic in the financial markets for the new year, more than half of respondents (51%) cited "interest rate cuts by major countries." This was followed by "the outcome of the U.S. presidential election" (15%) and "the development of new industries such as AI and robotics" (10%). When asked which individuals would have the greatest influence on the stock market in the new year, former U.S. President Donald Trump (30.4%), Federal Reserve Chair Jerome Powell (15.8%), and U.S. President Joe Biden (7.1%) were most frequently mentioned.

In response to a question about their portfolio allocation between stocks and bonds (interest rate products) in 2024, 83% of respondents said they plan to diversify their investments. The largest group (32%) indicated they would allocate their investments in a 60:40 ratio between stocks and bonds, while 22% planned to invest in an 80:20 ratio.

63% of respondents plan to increase their allocation to equity assets in the new year, with a focus on expanding investments in Korea (47%) and the United States (40%). More than half of those surveyed (51%) selected artificial intelligence (AI) and semiconductors as the most promising sectors for investment. Sectors such as secondary batteries and defense/robotics, which saw significant gains last year, were chosen by 17% and 15% of respondents, respectively.

Domestic high-net-worth individuals mainly responded that they view the new year's financial markets as "a year in which one must prepare for future crises even in a stable environment." This sentiment aligns with the Chinese idiom "Geoansawi" (preparing for future crises despite stable market conditions), which was chosen by 33% of respondents as the idiom of the year. Other popular choices included "Gojingamrae" (experiencing difficulties in the first half, but achieving sweet returns in the second half) and "Dadainseon" (the more, the better).

This content was produced with the assistance of AI translation services.