Personal thoughts. Investing

Self Q&A

(Personal thoughts. Investing in cash, U.S. bonds, and Korean stocks based on the thoughts below.)

Q. What assets do you think are currently undervalued?
A. They are Korean stocks and U.S. bonds.

Q. What makes you think so?
A. Korean stocks currently have a very low PBR of 0.85, with U.S. bonds offering a high interest rate of 4.7%. This means both assets are currently undervalued in the market.

Q. What assets do you think are currently overvalued?
A. They are quantum computers, cryptocurrencies, Tesla, and Nvidia.

Q. What makes you think so?
-Quantum computer: It is currently in the red, and the possibility of a surplus transition in the next 10 years is very low. The technical potential is great, but it is expected to take a considerable amount of time to commercialize.
-Cryptocurrency: There is no physical value, only speculative trading value. The price volatility is very high due to leveraged trading, and there is always a possibility of bubble collapse.
-Tesla: The PER 100-fold reflects high expectations for future growth, but growth has recently slowed. The stock is currently considered overvalued due to factors such as intensifying competition in the electric vehicle market and a delay in developing autonomous driving technology.
-Nvidia: A leader in AI, but currently AI technology remains in the investment phase rather than revenue generation. If big tech companies' AI investment declines, Nvidia's earnings will deteriorate and its stock will likely fall.