Today’s stock market is experiencing some index corrections amid expectations for negotiations between the US and Iran, while individual stocks, particularly in the artificial intelligence sector, are moving in a tense tug-of-war. As market volatility has recently increased, many investors are feeling anxious about stock price drops and are struggling to find the right timing for their trades. However, during such times, it is more important than ever to focus on the intrinsic value of companies rather than being swayed by minor short-term price fluctuations. Wise investors who have survived in the stock market for a long time have not sold their stocks out of fear; instead, they have seen it as an opportunity to buy high-quality companies at lower prices. In this article, we will calmly analyze the current trends in the stock market and provide detailed tips for managing assets without being shaken by volatile market conditions. We will break down the complex indicators of the stock market one by one to provide investment guidelines that anyone can easily understand.
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Value Investing Strategies to Survive Market Volatility and Analysis of AI-Related Stocks
1. Today’s Stock Market Through the Lens of Warren Buffett’s Philosophy
No matter how turbulent today’s stock market may be, it is easy to find peace of mind by recalling the investment mottos of Warren Buffett, known as the Oracle of Omaha. Buffett advised that investors should ask themselves if they would still hold a stock if the stock market were to close for the next five years. In reality, there are many office workers who stare at their phone screens all day, worried that the stocks they bought today might drop tomorrow. As a result, they fail to focus on their work and find themselves constantly distracted by checking stock prices on securities apps during working hours. However, if a company produces products and technologies that are essential to people’s lives worldwide even ten years from now, a short-term drop in stock price is not a major issue. Even if bad news breaks out in today’s stock market and causes a stock price to halve, as long as the company itself does not go bankrupt, it should be viewed as a passing shower. The common trait among those who have built great wealth by buying high-quality stocks in the past and holding them for a long time is this steady patience. It is far more beneficial to check whether the company’s performance and business direction are on the right track rather than opening the stock market ticker every morning and sighing. For example, if you hold stocks in a company that produces essential goods used by your entire family every day, you can afford to buy more when the stock price drops. This is because companies related to basic human needs such as food, clothing, and shelter will eventually return to their original value, no matter how the world changes. Maintaining a strong mindset without being elated or depressed by the ups and downs of today’s stock market is the first step toward successful investing. We recommend taking the time to seriously consider whether the stocks in your account are truly worthy of surviving and thriving five years from now.
To avoid being shaken by short-term volatility in today’s stock market, one should adopt a value investing philosophy that involves investing in high-quality companies capable of being held for five years or more.
2. The Present and Future of AI and Data Center Related Stocks
The hottest topic in today’s stock market is undoubtedly the stock price trends of companies related to artificial intelligence technology and the data centers that support it. Recently, AI assistants and conversational robot technologies unveiled by major tech companies have gone beyond mere curiosity and are completely changing the way we work. Just as a significant bubble formed when computers and the internet first appeared, the current AI-related market also sees a coexistence of intense heat and concern. However, just as the internet eventually changed the world, AI is an unavoidable massive trend, and related infrastructure is expected to continue expanding. For instance, the reason companies are sparing no expense to build clouds and high-performance data centers to improve work efficiency lies here. In this process, companies that build comprehensive data management and security systems, rather than just supplying graphics processing units, are receiving attention. The reason companies like LG CNS are gaining attention in the domestic and global stock markets for their fusion of data centers and AI is that it leads to substantial revenue. However, some warn that AI may reduce jobs, suppress consumer sentiment, and ultimately have a negative impact on the entire stock market. In fact, as technology advances, the space for workers performing simple repetitive tasks is shrinking, which is a clear reality happening before our eyes. Nevertheless, the giant companies that survive in this massive wave are likely to maximize productivity and generate enormous profits. Therefore, investors should cultivate the discernment to select AI-related stocks based on actual performance that generates revenue, rather than blindly buying into trends.
AI and data center related stocks, which are leading today’s stock market, should be approached by carefully selecting high-quality companies that deliver substantial performance.
3. Signals from Global Economic Indicators and Gold Prices
To accurately read today’s stock market, one must examine macroeconomic indicators such as the movement of the US New York stock market, international oil prices, and gold prices. Recently, as international oil prices fell due to the negotiation stance between the US and Japan, investor sentiment showed signs of stabilization, but unstable factors remain. In particular, whenever the stock market is unstable, funds flow into safe assets, resulting in gold prices consistently maintaining high levels. In fact, the fact that the price of one won of pure gold is recording high levels according to Gold Price.com is evidence that many investors are wary of market risks. While movements to prepare for interest rate volatility continue in the bond market, volatility in the stock and Bitcoin markets is surprisingly calm. When the perception of risk differs depending on the nature of the market, investors must manage risk by adjusting their cash ratio. The habit of consistently observing the impact of daily published inflation and employment indicators on today’s stock market is greatly helpful for long-term investing. For example, when exchange rates surge or raw material prices fluctuate wildly, one must identify in advance whether the structure of the stocks they hold is vulnerable to such shocks. It is safer to understand the big picture of the macroeconomy before trading, rather than jumping into stocks that people around you recommend simply because they are going up. The stock market is like a massive wave; an individual cannot change it with force, but it is entirely possible to read the direction of the wave and adjust the sails. If you use the trends in gold prices and exchange rate fluctuations as your personal investment compass, you can handle a market crash calmly and composedly without panic.
To predict the direction of today’s stock market, one must analyze the trends of macroeconomic indicators such as international oil prices, gold prices, and exchange rates together.
4. The Risks and Proper Use of Margin Trading and Stock-Backed Loans
Warnings continue regarding “margin trading” and stock-backed loans, where investors recklessly borrow money to seek high returns in today’s stock market. When stock prices rise, profits are doubled thanks to borrowed money, but conversely, when stock prices fall, unbearable losses balloon instantly. In reality, it is easy to see people around us who took out stock-backed loans to buy stocks they liked, only to suffer sudden limit-downs or forced liquidations and lose their assets. Money borrowed from securities firms does not wait for market conditions to improve; if the value drops below a certain level, the stocks are forcibly sold. This leads to a tragic situation where one loses most of the principal without even having a chance to recover. Therefore, when investing, one must absolutely avoid the reckless method of using money that is not one’s own, particularly loan funds that incur interest. If it is unavoidable to use loans, it is essential to make daily, thorough efforts to check the flow of the stock market and the risks of individual stocks. One must frequently check if the collateral ratio of their stocks is safe and keep emergency funds available to respond immediately when bad news breaks. The stock market can open a fast path to wealth, but it is also a cruel place that can take everything away in an instant. Only when one lets go of greed and continues investing with only surplus funds that they can comfortably afford can they achieve peaceful asset growth. If you have been dreaming of getting rich quick through loans while looking at today’s stock market, we urge you to withdraw that dangerous thought immediately.
Excessive investment using stock-backed loans in today’s stock market can lead to forced liquidation and significant losses, so one must invest only with surplus funds.
5. Common Traits and Survival Strategies of Companies That Changed the World
Among the countless stocks in today’s stock market, which companies will survive ten years from now and maintain their positions at the top of market capitalization? When the internet was first introduced to the world, numerous dot-com companies emerged, but most of them disappeared into history as the bubble burst. However, amidst that chaos, innovative companies like Google and Amazon, which completely changed people’s lifestyles, grew into the world’s greatest giants. The current boom in AI and data centers shows a very similar pattern, and we must identify who the true winners will be in this process. Rather than chasing the stock prices of companies grouped together as theme stocks simply following trends, one must find companies with solid technological capabilities and monopoly power. Platform companies that permeate every moment when office workers open their smartphones after work to buy goods and watch videos can be the answer. When people feel they cannot live a single day without a certain service in their daily lives, the stock price of that company naturally trends upward. Conversely, a company that fails to receive continuous customer choice will eventually be eliminated from the market, no matter how advanced the technology it handles. If you carefully read the past performance and business reports of the numerous companies listed in today’s stock market, you can tell if the company has true capabilities. Investing by blindly following the crowd because “everyone is buying it” is like sprinting at full speed in a marathon course and collapsing early on. Accumulating wealth by gradually gathering stocks of great companies that benefit the world with a long-term perspective is the most certain and safe method.
Companies that will survive in today’s stock market are not those riding temporary trends, but those deeply rooted in people’s daily lives, creating continuous value.
6. The Attitude of a Wise Investor Towards Today’s Stock Market
The most important virtue for individual investors to maintain amidst the complex flow of today’s stock market is an unshakable mentality and thorough fund management. If one’s mind is captured by sensational news articles and rosy forecasts from the securities industry that pour out every day, one eventually falls into a vicious cycle of buying at the wrong timing and selling out of fear. Investing is not a competition with others but a battle solely with oneself, a process of patience where one believes in the value of the companies they have bought and endures to the end. It is far more beneficial to cut the number of times you check stock prices on your smartphone in the morning in half and instead read books or focus more on your main job. This is because the achievements and knowledge gained from your main job today are a sturdier asset than the profits earned in today’s stock market. We hope you spend your weekend calmly preparing for the economic trends of 2027 and beyond while reviewing your long-term portfolio. The stock market never rises forever, nor does it fall forever; it simply repeats ups and downs, rewarding diligent investors. There is no need to sigh or feel depressed just because stock prices have dropped slightly right now; instead, consider it as buying quality stocks at a sale price. A wise investor does not leave the port when a storm approaches but drops a strong anchor and waits for the coming sunlight. Take this meaningful time to review the closing stocks in today’s market and calmly refine the direction of your investment account once more. We sincerely support you in changing small habits starting today so that your precious assets can take root on a solid philosophy.
To overcome the waves of today’s stock market, one should not obsess over short-term prices but focus on their main job and manage assets from a long-term perspective.
Frequently Asked Questions
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