[Edaily Reporter Kim Kyeo-Re ] As U.S. stock markets edged slightly lower from record highs and volatility in the bond market increased, investment experts identified Korean stocks, luxury goods, and water-related companies as promising investment opportunities.

Bloomberg reported on the 9th (local time) that when it asked asset management experts where to invest $10,000 (approximately 13 million won), the Korean stock market was cited as an investment opportunity offering both undervaluation and growth potential in both U.S. and overseas markets. Korean stocks are considered a market where investors can gain exposure to the growing artificial intelligence (AI) industry at relatively low prices, despite high volatility.
The Korean stock market has experienced significant volatility, rising about 90% from its low in March to its high in June, only to plummet 35% in just a few weeks. However, analysts note that as the market has recently stabilized, the combination of falling stock prices and improving corporate earnings has made valuations more attractive. The KOSPI is currently trading at about 6 times next year’s estimated earnings.
In particular, large-cap tech companies—which account for a significant portion of the domestic stock market—are directly benefiting from the expanding demand for memory semiconductors needed for AI data centers. They are viewed as the companies supplying the “picks and shovels” for the “gold rush” of the AI era.
Although the stock market plummeted as leverage—which had surged last spring amid the AI investment boom—began to shrink in late June, analysts note that a significant portion of excessive leveraged investing, particularly among domestic retail investors, has now been resolved. With major cloud companies continuing to make capital expenditures, semiconductor demand is expected to remain strong for the foreseeable future.
However, the low valuations in the Korean stock market rely on the assumption that demand for memory semiconductors will continue to rise. High market volatility has also been identified as a risk that investors must bear.
Luxury goods were also cited as a contrarian investment opportunity. Investors have undervalued related companies in recent years, reflecting concerns that the luxury industry’s high growth rates and pricing power could weaken.
However, analysts note that demand for luxury goods has not disappeared; rather, it is shifting to different regions and product categories. The global luxury market—which includes personal luxury goods, automobiles, hotels, and high-end dining—is valued at approximately $1.6 trillion annually. In the United States, India, Southeast Asia, and the Middle East, luxury consumption is growing rapidly, driven by an increase in the number of high-net-worth individuals.
Consumption is also expanding from traditional goods, such as handbags and watches, to experiences such as luxury travel, hotels, wellness, and dining. Experts advise paying close attention to companies with strong brand value and stable distribution networks. They explain that ultra-high-net-worth individuals, who account for about 40% of global luxury consumption, are likely to maintain their spending power despite rising inflation and interest rates.
Water-related companies were also cited as long-term investment opportunities. This is because, amid worsening climate change and droughts, investment in related infrastructure has been insufficient for decades.
Global per capita available water resources have decreased by about two-thirds since 1960. By 2030, global water demand is projected to exceed supply by 40 percent. While the necessary investment in water-related infrastructure is estimated to reach $13 trillion by 2040, a funding shortfall of approximately $7.5 trillion is projected.
Investment targets include infrastructure for flood and drought response, water treatment and recycling, leak prevention, desalination, water quality monitoring sensors, and data analysis technologies. Suggested related exchange-traded funds (ETFs) include the Invesco S&P Global Water Index ETF, the First Trust Water ETF, and the Invesco Water Resources ETF.