Comedy makes even the most ruthless tyrants palatable. Terror stabilizes their power, no matter how ridiculous they might appear – it is an antidote to their ridiculousness. Kim Jong Un’s chubby figure and his hairstyle have a completely different meaning with and without nuclear weapons — Notes From Disgracedland
Who’s afraid of “Rocket Man”?
Apparently not South Korean equities, although the last couple of weeks have seen foreigners selling with domestic institutions taking the baton.
As a reminder, the Kospi rose 1.8% last week, snapping a two-week losing streak despite Kim’s latest (literal) shot across the bow. And on Monday, the rally continued as South Korean shares “rocketed” 1.3% higher for their best day sine early May:
“South Korea’s shares are rewarding those brave enough to look past North Korea’s saber rattling to some of the strong fundamentals that underpin the bull case,” Bloomberg’s Kyoungwha Kim wrote overnight, adding that “the Kospi‘s climb to the highest in more than a month comes before South Korea PPI data due Tuesday, that is likely to show factory-gate prices bounced back in August.”
As a reminder, the “strong fundamentals” Kim (not that Kim) references look like this:
Rock-bottom valuations and sky-high earnings growth.
What’s not to like? …