Core Insights - In South Korea, some investors are actively betting on leveraged VIX investments to hedge their large U.S. stock holdings or seek new speculative opportunities [1] - The 2x long VIX futures ETF has attracted approximately $130 million in inflows this year, aiming to achieve double the returns of the Chicago Board Options Exchange's VIX futures [1] - This ETF has become one of the most popular U.S. stock ETFs among Korean investors, ranking seventh in purchase volume in July [1] - The new inflows account for about 20% of the global inflows into this ETF [1] - Amid years of enthusiasm for large tech stocks and cryptocurrencies, many Korean investors are now preparing for potential market sell-offs as U.S. stock valuations approach historical highs, with discussions about "bubbles" rising on social media [1]

Group 1 - The U.S. stock market continues to reach new highs despite multiple pressures, with the S&P 500's price-to-earnings (P/E) ratio at 22 times, significantly above the long-term average of 35% [1] - The market's ability to sustain this upward trend depends on whether corporate earnings can exceed expectations or if the Federal Reserve will lower interest rates [1][4] - The S&P 500 index is currently facing historical challenges, including a new U.S. government's efforts to adjust global order and implement large-scale tariff policies, alongside uncertainties from conflicts in the Middle East [1] Group 2 - The S&P 500's current P/E ratio of 22 times is 35% higher than its long-term average, raising concerns about overvaluation [1][3] - A Bloomberg model suggests that the fair P/E ratio for the S&P 500 should be around 17.7 times, indicating that earnings would need to grow by 30% in the next year for the P/E to return to reasonable levels [3] - Investment strategists express caution regarding the sustainability of current market levels, suggesting that earnings expectations for the second half of the year may be overly optimistic [3][5] Group 3 - The Federal Reserve has indicated that it is not in a hurry to adjust policies, although lower inflation and weak labor recruitment may lead to earlier rate cuts this year [4] - Wall Street strategists recommend viewing any potential market pullbacks as buying opportunities, particularly in technology and growth stocks [5]