"KOSPI Plunge Proves Me Right! You'll Never See These Levels Again," Declares Bubble Theorist

Following the U.S. and Israeli airstrikes on Iran, the KOSPI Index plunged, and a well-known Wall Street analyst who had previously warned of an "overheating" in the KOSPI declared "victory."

Marco Colanovic, former chief strategist at JP Morgan, stated on his X account on March 3 (local time), "I predicted the date when war would break out, said that the Nikkei and KOSPI indices would crash, and that the Strait of Hormuz would 'close.' I also warned people not to trust the movements in the U.S. stock market last Monday (the 2nd)."

An article by Marco Colanovic, former JP Morgan strategist, published on X. Screenshot from X

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He went on to criticize, "Still, most people are choosing to put on blinders, insisting that 'nothing will happen.'"

Colanovic posted a screenshot showing the KOSPI Index closing down by 7.25%. He also pointed out that the Korean investment exchange-traded fund (ETF) 'iShares MSCI Korea (EWY)' plunged 12% in pre-market trading.

He has long argued that the KOSPI is in a bubble. Last month, he stated, "The Korean stock market is like the new silver. Beware of the looming crash." He further warned, "It took 40 years for the KOSPI to rise from 1,000 to 2,000, but it surged 4,000 points in just a few months. Any investor buying now is very unlikely to ever see these levels again in their lifetime."

Colanovic previously worked as an investment strategist at the U.S. investment bank Bear Stearns. After Bear Stearns was acquired by JP Morgan, he continued his career as a strategist at JP Morgan. He developed a reputation for highly accurate predictions in the U.S. stock market and was once nicknamed "Gandalf," after a character from The Lord of the Rings.

However, during the sharp decline of the S&P 500 Index in 2022, he faced criticism for maintaining a bullish stance, and then sticking to a bearish outlook during the subsequent rebound.

He stepped down as a JP Morgan strategist in July 2024 and is now highly active on social networking platforms such as X.

Meanwhile, on March 4, the KOSPI closed at 5,093.54, down 12.06% from the previous trading day.

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