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Beware of 'Expected Surge Stocks' Lures... Expert Warns: "Investing Based on Sensational Claims Can Lead to Major Losses"

The stock market has been exhibiting significant volatility recently. In the February 28 trading session, both major indices, the KOSPI and KOSDAQ, plunged, dem

Oseong Kwon
Staff Reporter
5 min read
Beware of 'Expected Surge Stocks' Lures... Expert Warns: "Investing Based on Sensational Claims Can Lead to Major Losses"
CBC News

The stock market has been exhibiting significant volatility recently. In the February 28 trading session, both major indices, the KOSPI and KOSDAQ, plunged, demonstrating market movements so dramatic that they are difficult to predict even a step ahead.

Amid this trend, as the number of stock investors surges, content featuring phrases such as 'expected surge stocks,' 'expected daily limit tomorrow,' and 'free recommended stocks' is rapidly increasing, primarily across online and mobile platforms. Experts are urging extra caution, warning that investing based solely on such sensational expressions can lead to significant losses.

Beware of Clickbait and Exaggerated Returns Recently, phrases like 'expected surge stocks,' 'imminent surge,' and 'must-see stocks today' can easily be found exposed in the form of advertisements or promotional content on portal sites, news services, and various internet websites. While some of these are legitimate investment information services, a considerable number of cases employ simple clickbait or tout exaggerated returns.

The securities industry emphasizes that no one can definitively predict how stock prices will move in the short term. This is because various variables—such as corporate earnings, public disclosures, macroeconomic conditions, interest rates, exchange rates, international affairs, and investor sentiment—simultaneously exert influence. Therefore, definitive expressions such as 'a surge is certain' or 'a daily limit is scheduled' can hardly serve as a basis for investment decisions.

Inducing Purchases via SNS and Messengers Is Also a Problem In particular, cases of inducing investors to buy specific stocks or promoting guaranteed excessive returns through social media or messengers continue to occur.

It is advisable for investors to verify the source and reliability of the information, and to comprehensively review corporate disclosures, financial conditions, and business prospects before deciding whether to invest.

"Review Objective Information Alongside Risk Factors" Experts advise that it is important to cultivate investment habits that examine objective information alongside risk factors, rather than being swayed by advertisements or promotional phrases that solely emphasize high short-term returns. They explain that since the possibility of loss always exists in investing, adhering to basic principles such as thorough information verification and portfolio diversification is of the utmost importance.

Oseong Kwon
Staff Reporter

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