Hong Hao: The Tech Stock Correction Window May Extend Until the End of August, Despite a Possible Double-Digit Rebound in the Short Term

July 31st - At the Binance offline private sharing meeting, renowned economist Hong Hao stated that the previously predicted major correction window has opened. It is expected to last until around the end of August. In the short term, there may be a double-digit rebound, but the current market is still in a deleveraging phase, so investors may need to be more patient. Hong Hao pointed out that the South Korean KOSPI index has significantly retraced from its high point, and the market is now entering a phase of "bulls buying the dip and bears cutting losses." Due to the index's high concentration on a few tech giants, their fundamental performance will continue to be a key factor in determining whether the market has truly bottomed out.

Regarding whether one should immediately allocate to tech stocks, Hong Hao stated that in the next two to three weeks, the signals of a market bottom are expected to become clearer. It is more important to remain patient before that. He cautioned that a typical asset bubble bursting often experiences a two-thirds or even greater adjustment. Although the market has already seen about a 50% decline, there is still room for further downside.

Hong Hao also mentioned that, in addition to price trends, attention should be paid to South Korean regulatory policies, the deleveraging process, and the impact of overseas leveraged ETFs on the market. He believes that if this round of adjustment can be completed relatively quickly, it will also provide a more attractive opportunity for long-term investors bullish on related assets.