EWY: Why South Korea's Bear Market Is A Warning Sign To U.S. Stock Investors

iShares MSCI South Korea ETF is highly concentrated in Samsung and SK hynix, making it a leveraged AI hardware play. EWY recently entered a bear market, reflecting both global tech volatility and the outsized influence of its top holdings. Despite reforms and increased index weight, South Korea's market remains vulnerable due to governance issues and extreme tech sector concentration.

I view EWY as a high-risk, high-reward trade, not a long-term investment, given technical overextension and historical drawdown patterns.