‘K-shaped’ rally leaves many investors behind
The ongoing stock market rally is supposed to be a source of excitement for investors. But for an office worker in his 50s surnamed Kim, the recent surge in stocks has brought more frustration than joy. The reason is very simple. He does not own shares in Samsung Electronics, SK hynix or other large-cap leaders that have powered the market in recent months. Instead, his portfolio is filled with small-cap stocks that have failed to participate in the bull market run. A bigger problem is that he is still clinging on to his holdings, hoping that someday, their prices will rise. But unfortunately, we all know such rebound never comes. “I could buy the leading stocks even now because I have cash,” Kim said. “But I’m afraid I would be buying at the top. I’d rather wait for a correction, even though I know the rally may not end soon.” He is one of hundreds of thousands of individual investors who have been sidelined by a “K-shaped” rally, in which a small group of dominant companies surge while the majority of stocks lag behind. The benchmark KOSPI index has been on a record-bre