AI Is 20-to-30 Year Megatrend, ETF Father Warns Against Leverage Risk on July 21

According to an interview with Asia Economy News yesterday (July 21), Bae Jae-kyou, CEO of Korea Investment Trust Management and known as the father of ETFs, emphasized that artificial intelligence represents a 20-to-30 year megatrend comparable to historical breakthroughs like steam engines, electricity, and the internet. He cautioned individual investors against short-term speculation and urged focus on compound growth through long-term investing. Bae specifically warned about single-stock leveraged ETFs, explaining that volatility erodes capital even when underlying prices return to original levels. He illustrated the risk with a 2x leveraged example: while a base asset gains 25% then loses 20% (breaking even), a 2x product gains 50% then loses 40%, reducing capital from 100 to 90. Bae recommended patient investment in mega-tech companies supporting AI infrastructure.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments