Investing in Korea: 4 Stocks, an iShares ETF and a Closed-End Fund (KB, SHG, PKX, LPL, ETF: EWY, CEF: KF)

Try to imagine for just a moment the Dow Jones Industrials climbing by 54% (5,842 points), to set a new all-time record high of 16,670. Absurd, unthinkable, just plain crazy, you might say. But that’s precisely what occurred in the Krazy Korean Kospi index in 2005, to earn the honor as the best performing stock market in the world. The doubling of Kospi juggernaut from two years ago is all the more impressive when one considers the Korean won’s sizeable gains against the Chinese yuan, the Japanese yen, and the US dollar over that time period.

Watching the Kospi climb day after day, without much hesitation, to complete its stunning 54% gain, reminds us to never underestimate the Asian penchant for high-stakes risk-taking, especially at home. But in dealing with the Kospi index in 2006, remember the advice of the legendary trader Jesse Livermore, “Stocks are never too high for you to begin buying, or too low to begin selling. But after the initial transaction, do not make a second unless the first shows you a profit.

Comments

[gabbychabby]

interesting commentary on the kospi. i own kf which is off 50%.
how do you feel about the korean market now? trying to decide to sell or ride it out. any opinions?