Samsung Electronics and SK Hynix Rally Fuels More Margin Buying on FOMO

Shares of Samsung Electronics and SK Hynix have been rising sharply in recent sessions, and the rally is prompting more retail investors to buy with borrowed money as FOMO, or fear of missing out, spreads. According to the original report, anxiety that others are making money while they are not has encouraged more so-called debt-fueled investing through margin loans. Margin financing allows investors to borrow from brokerages to purchase shares. It can expand potential gains when prices rise, but it also increases the burden if prices fall. As the strong gains in Samsung Electronics and SK Hynix continue to influence investor sentiment, the market is watching the risk that excessive borrowing could deepen losses if volatility rises. Source: mk.co.kr