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KOSPI Crashes 40%: Opportunity or AI Bubble Warning?
By The Fifth Person  •  August 19, 2026
The KOSPI more than doubled in 2026 before plunging 40%—but what drove this extraordinary boom-and-bust cycle? We unpack three key factors that fuelled the spectacular rally and magnified the subsequent crash, while examining the role of volatility, investor sentiment and leverage in the market. With KOSPI valuations now significantly lower, is this an attractive buying opportunity, or could the market have further to fall? Finally, we also discuss whether Singapore’s similarly top-heavy Straits Times Index could ever face the same risks and scenario. All this and more in our latest episode! 00:00 Intro 01:07 KOSPI rise & fall 04:13 Leveraged ETFs 05:55 Volatility 09:45 Bubble 13:41 Opportunity? 17:41 Allocation 18:15 Semiconductor cycle 19:21 Leverage in the system 23:35 STI concentration 📧 THE FIFTH PERSON NEWSLETTER - Subscribe for Free Exclusive Webinars and More! https://fifthperson.com/newsletter/ 📖 FREE EBOOK - A Quick-start Guide to Winning the Game of Stocks https://fifthperson.com/ebook/ Here are a few more investing tips and tutorials to help you out: 💵 HOW TO INVEST IN DIVIDEND STOCKS https://www.youtube.com/watch?v=AjpiAx3j8L0 🏢 HOW TO INVEST IN REITS https://www.youtube.com/watch?v=qEzy7HFoEeA 🏖️ HOW TO GROW YOUR CPF FOR RETIREMENT https://www.youtube.com/watch?v=bvZ3uH0FA0Q 📄 HOW TO READ A FINANCIAL REPORT https://www.youtube.com/watch?v=m4WqlILejKs
📊 Get more investment insights, tips, and company analysis from our blog (100% free). https://FifthPerson.com 🎙️Also on Spotify: https://podcasters.spotify.com/pod/show/the-fifth-person...
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By The Fifth Person
The Fifth Person believes in spreading a message that financial literacy and sound investment knowledge can help people around the world achieve financial independence and lead better lives for themselves and their loved ones.
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