You wouldn’t know it from the performance of the underlying ETF, which is up 50 percent-plus for the year, but the South Korean economy is still suffering from its heavy export dependence to the U.S. Exports fell by 20.6 percent in August and are down 32 percent for the year, which is why the Asian Development Bank has forecast a 2 percent contraction of the Korean economy this year. Plus, one U.S. company that stands to make a mountain of money from its new permission from Korean regulators to set up shop in Korea.
Best,
Tony
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{ 6 comments… read them below or add one }
I ca’t understand a word what you are saying.You are just mumbling your words.Have you tried to hear yourself?
Why don’t you write notes like the rest of Weiss research people do?
Tony your video has voice echos and can’t understand it
Frank
Thanks it has been corrected
Frank
Hi, Tony
You are absolutely spot on .
Regards, Twain
Thanks for the warining, Tony. As usual, well said and easy to understand. Really appreciate your insights.
While no economy is perfect, and right now there might not be any that are even good, what I do see is a growing number of Korean goods in American stores. Samsung and LG home appliances are getting equal floor space to traditional US brands, flat screen monitors and TVs seem to be more and more Samsung and LG, and those brands are no longer considered cheap junk brands. Hyundai is now bigger than Nissan in the US market, and their reliability scores are now up with the Japanese brands. It’s sister company Kia still lags behind, but their new cars such as the hip Soul should be successful. Being neighbors to China should give them an advantage in providing heavy equipment.
To me Korea seems to be on its way to being the new Japan. For disclosure I am a buy and hold investor in EWY.