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Samsung Electronics, SK Hynix Rally Fuels More Margin Buying on FOMO

Published: · Source: mk.co.kr

Samsung Electronics, SK Hynix Rally Fuels More Margin Buying on FOMO
TL;DR: As Samsung Electronics and SK Hynix shares have surged recently, investors feeling left out of the rally are increasingly using margin loans to buy into the semiconductor leaders.

Samsung Electronics and SK Hynix have continued to post sharp share-price gains recently, and anxiety among investors who missed the rally is translating into more purchases funded by margin loans. The trend reflects growing FOMO, or fear of being left out, among individual investors buying major semiconductor stocks with borrowed money. According to the original report, credit loans used for leveraged stock purchases are also on the rise alongside the strength in Samsung Electronics and SK Hynix. While the rally is encouraging late buyers to enter the market, margin financing can also increase the burden of losses when share prices fluctuate. Source: mk.co.kr

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