Brexit - a great chance to purchase stocks in low price

Brexit - a great chance to purchase stocks in low price

The British voted to withdraw from the EU, which they stayed for 43 years. Each stock market around the world are super nervous, because they don't know how much this Brexit will impact the stock market. It is a natural reaction, because none of EU members has not withdrawn from the Europe community.

Do we really have to be super nervous? I don't think it's necessary. KOSPI more deeply plummeted (six times) than these days since 2010. At those moments, it retreated 2.9 - 16.9% but quickly recovered the original KOSPI.

I think, this time, the impact would be much lesser, and the market would be more quickly recovered. The reason is that South Korea exports only 1.4% of the total amount of export to the United Kingdom. England is just 16th country among the whole economic partners of South Korea in terms of the amount of trade volume. Also, if won-yen exchange rate rises the competitiveness of products, which compete to Japan products, from South Korea will be strengthened.

There is, of course, a concern that the UK funds takes around 8.5% of South Korea stock market. If the UK withdraws money from South Korea stock market, it would be severely impact the stock market again making a synergy effect with leaving other countries money. It is still, however, unlikely to happen, and it's just one of a few

Of course, there is also concern that the UK funds account for 8.5% of the domestic stock market. If the UK withdraws money from the Korean stock market, it will be able to shake the stock market again, along with the funds it follows. But this is unlikely to happen, and it's just one of a few scenarios that doesn't seem like occur.

The variability of the market caused by Brexit should be recognized as a bargain sale for blue chips, which only comes maybe once a year. We have to fully harness this moment as a chance to buy stock items that we have carefully watched at a low price.