Ohad Topo, Chairman of TCK Investment: "Global stock markets overheated… time to hold cash and wait for timing"

Ohad Topo, Chairman of TCK Investment

Has risen to shoulder level including the US and Korea

Should sell stocks to secure liquidity

"The global stock market has become excessively overheated in a short period. It is time to realize gains on at least some holdings and wait for another investment timing."

Ohad Topo, chairman of TCK Investment (pictured), emphasized in an interview with the Korea Economic Daily on the 3rd that "this is a time when warnings are needed for individual investors." This is because he judged that global stock markets, including the US and Korea, have entered an overheated phase. TCK Investment is an asset management firm based in Seoul and London that manages assets for ultra-high-net-worth individuals, family offices, and corporations. It manages the assets of corporate founders and major shareholders among other ultra-high-net-worth clients.

Topo diagnosed that the concentration in world stock markets is severe. He said, "The US market has risen relying on a single theme called artificial intelligence (AI)," adding, "The S&P 500 index price-to-earnings ratio (PER) is 23 times, but excluding the 10 large tech stocks the PER falls to 19 times, showing severe concentration."

He judged that Korea's market is also overheated as it has risen centered on the semiconductor sector. He said, "In light of the Korean investing adage 'buy at the knees and sell at the shoulders,' the market has now risen to the shoulder," and added, "If individual investors cannot respond quickly, it would be wise to sell part of their holdings to take profits." TCK Investment also maintained a higher-than-global-market-cap weighting of the Korean market in its portfolio since 2022, but recently sold about half to realize gains.

Asked about assets to watch besides stocks, he replied, "Honestly, there is nothing to buy in the public offering market." He expressed the view that most assets have become too expensive as an 'everything rally'—where both risk assets and safe assets rise—has continued recently. Topo said, "Now is the time to secure liquidity and wait for the next investment timing," and added, "If an investor is considering newly entering the stock market, it's better to overcome 'FOMO' (fear of missing out), hold cash, and watch for opportunities."

Reporter Suji Na suji@hankyung.com