EWY Vs. EWH: Michael Burry Has This Backwards

Michael Burry made a bullish call on Hong Kong over Korea. I disagree. Korea's selloff is a dip to buy, not a structural rotation out. The market's trigger: Moonshot's Kimi-K3 launched cheap and strong at coding, reviving DeepSeek-style fears that Chinese AI threatens Samsung and SK Hynix memory demand.

I read it like DeepSeek in January 2025, a scare that faded. Winning is revenue per token, not token volume, and Anthropic and OpenAI take the revenue. EWY is a ~50% tech bet on the US AI/memory story; EWH is nearly 60% financials and property. Different trades entirely, despite the ticker's Nasdaq nod.

Hong Kong's cheaper valuation reflects a persistent China premium caused by weak capital rights, and currency devaluation. It's not a bargain. That discount can widen. I'd buy Korea's pain instead.

Famous investor Michael Burry kicked up a discussion about Asian stocks this past week. Now that he has transitioned to blogging instead of running a hedge fund (no shade here — pots and kettles), his positions are harder to track