Investing in Investments to Boost South Korea’s Economy | So Good News


Finding opportunities in emerging markets (EM), especially in existing markets, can be like finding a needle in a haystack. Fortunately, South Korea is one of these countries, which makes the process easier than we expected.

South Korea’s economy is booming Direxion Daily South Korea Bull 3X Shares (KORU). The currency is above 20% within the last month, benefiting from the reopening of its economy and, therefore, consumers who are ready to reopen their wallets and use them properly.

In many countries, inflation has been a thorn in the side, but it’s easy to forget that Covid-19 is still a thing. South Korea is still battling the virus, but as the country looks set to return to normal, consumers are spending again.

Kathleen Oh, an economist at Bank of America’s Korea Korea said: “Consumption continues to grow due to the reopening and demand for jobs; We are seeing a ‘return’ of strong spending on leisure, entertainment, and travel.”

As for the fund, KORU aims for daily income results that are equivalent to 300% of the daily MSCI Korea 25/50 Index. The index is designed to measure the performance of the large and mid-cap South Korean equity markets, which account for approximately 85% of the free market capitalization of South Korean companies.

KORU's photo

More about KORU and YCharts

Bearish Pressure in 2023?

Despite the recent rise in South Korea, 2023 may paint a bleak picture. The same headwinds that many countries are facing in terms of global inflation will affect South Korea as well if not already.

“Based on the negative outlook on consumption and exports from the recently released data, we maintain our view that the economy will slow down at the beginning of next year,” ING economists said in a CNBC report.

EM countries like South Korea will be especially vulnerable if a global recession occurs. Likewise, recessionary challenges can be a boost for them Direxion Daily MSCI Emerging Markets Bear 3X ETF large funds.

EDZ aims for a daily trading performance of 300% against the daily performance of the MSCI Emerging Markets Index. The fund invests in exchange contracts, futures contracts, short positions, or other financial instruments that, in combination, provide long or short exposure to an index equal to 80% of the fund’s total assets.

For more information, details, and directions, go to Leveraged & Inverse Channel.


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