[Column] Balanced Investment Strategies for Individual Investors in the 2025 Stock Market

Jongyeon Yoon, Gold Private Banker Team Leader
Hana Bank Club1 Dogok PB Center Branch

Jongyeon Yoon, Gold Private Banker Team Leader at Hana Bank Club1 Dogok PB Center Branch

In 2025, global stock markets experienced a boom, driven by new growth stocks centered around artificial intelligence (AI), strong performance in the semiconductor sector, and the rise of K-export industries such as shipbuilding, defense, and beauty. Recently, SK Hynix set a new record by surpassing 9 trillion won in operating profit in the first half of the year, fueled by demand for HBM memory. Samsung Electronics also recovered 10 trillion won in quarterly operating profit, signaling the start of a structural growth trend in the semiconductor industry. Whereas the semiconductor industry was once subject to simple economic cycles, it is now considered to be in a phase of "qualitative growth" due to the transition to the AI era. In addition to semiconductors, industries such as shipbuilding, defense, nuclear power, and cosmetics have continued to grow steadily, despite increased geopolitical risks. Growth in the shipbuilding and energy sectors, led by the Trump administration, as well as expectations of interest rate cuts boosting the healthcare sector, have become key growth engines for global stock markets. This year, both the S&P 500 and KOSPI indices have broken through historic highs and continue to rise. Investors are left wondering how long this upward trend will last and should maintain a certain level of vigilance by identifying and preparing for potential risk factors. So, what risks should we prepare for this year?

The biggest risk is the tariff issue centered around the Trump administration. Recently, the delay in negotiations over 350 billion dollars in U.S. tariffs and the Trump administration's strengthening of trade policies remain major issues. Whether the tariffs already in effect have been fully reflected in the market remains to be seen, but market volatility is expected to increase depending on real economic indicators such as future inflation and unemployment rates. The direction of global investment markets will also be determined by whether the U.S. lowers interest rates in response. Despite expectations of rate cuts by the Federal Reserve, if inflation remains persistent, the market could face a correction due to weakened private consumption and the burden of higher loan interest rates. Other major factors that could increase market volatility include geopolitical uncertainty (such as military tensions in the Middle East and East Asia) and economic slowdown in Europe. In this environment, where both optimism and anxiety coexist, what investment strategies should individuals pursue to participate in the market?

A practical investment solution for participating in a rising market while preparing for risks associated with uncertainty is to maintain a balanced portfolio and implement a systematic rebalancing strategy. The key to balanced investing is to mix safe assets such as deposits and bonds with investment assets such as stocks and ETFs, and to flexibly adjust asset allocations according to market conditions.

Rebalancing refers to the process of adjusting asset allocations back to their original targets when changes in the market cause the initial ratios to shift. For example, if 50% of your total financial assets are allocated to deposits and bonds, and the remaining 50% to investment products such as equity funds and ETFs, you would implement rebalancing when market movements cause the asset allocation to become unbalanced. If stocks rise excessively and the proportion of investment assets increases from 50% to 70%, you would sell some stocks to increase the proportion of safe assets like deposits or bonds to 70%. Conversely, if stocks plummet and the proportion of investment assets drops to 30%, you would sell some safe assets to buy more stocks. Through this dynamic asset allocation, you can buy at low prices and sell at high prices, which offers clear long-term benefits in terms of compound returns and risk diversification. This approach allows you to manage your portfolio stably to achieve your target rate of return.

Jongyeon Yoon, Gold Private Banker Team Leader at Hana Bank Club1 Dogok PB Center Branch