Five Reasons To Be Cautious about Korea

It’s not that difficult to come up with a list of reasons why it might be a good time to invest in South Korean equities. Here are three: Strong U.S. economic growth, an accommodative monetary policy and a recovery in the Asian nation’s housing market. Unfortunately, it’s even easier to come up with a list of reasons that it most certainly is not a good time to invest in South Korea. In a recent report, Credit Suisse analysts Alexander Redman and Arun Sai outlined five of them. While the bank does remain “overweight” the country vis-à-vis investing benchmarks, it has reduced that stance from 15 percent overweight to only 5 percent. Source