Investors are currently dumping Korea, and with Samsung and SK Hynix dominating the index, selling Korea effectively means selling the memory trade. This trend has been evident in the recent chart from Goldman Sachs, which shows a significant decrease in investor interest in Korean stocks. The chart, which can be found on Twitter, shows a steep decline in the Goldman Sachs PB (Purchase Book) for Korea, indicating a shift in investor sentiment towards the country.

So, what does this trend mean for the memory trade? Firstly, it’s important to understand the significance of Samsung and SK Hynix in the Korean stock market. These two companies are the largest players in the global memory chip market, and their dominance in the index means that any decline in investor interest in Korea will have a direct impact on the memory trade.

The decline in investor interest in Korea could be a result of several factors. One possible reason is the ongoing trade tensions between the US and China, which have had a significant impact on the global economy. As a result, investors may be becoming more cautious and risk-averse, leading to a decrease in investments in emerging markets such as Korea.

Another factor could be the increasing competition in the memory chip market. As the demand for memory chips continues to grow, new players are entering the market, including Chinese companies such as Huawei and Xiaomi. This increased competition could be leading to a decrease in the market share of Samsung and SK Hynix, which could be a cause for concern for investors.

However, it’s important to note that the decline in investor interest in Korea could also have positive implications for the memory trade. As the market becomes more competitive, companies may be forced to innovate and improve their products, leading to better quality and more efficient chips. This could ultimately benefit the consumers, who will have access to better products at lower prices.