A double chart. On the left, the diagram of the classic speculative cycle: a white curve rising from take-off through the bear trap, first sell-off, awareness, enthusiasm and euphoria to a peak labelled “new paradigm”, falling, bouncing into a second, lower peak labelled “denial” — marked with a golden circle and the label “here?” — and from there dropping through fear and capitulation back to the mean. On the right, the weekly candles of the KOSPI between January 2025 and 27 August 2026, with the same phases labelled over the real path: take-off, awareness, enthusiasm, euphoria and a high of 9,385.59 on 19 June 2026, marked with a golden circle and the question “new paradigm?”. Then the fall to a low of 5,262.77, 43.9% below the high, and the bounce that follows. At the foot, a label: “back to normal? Rebound +31.3%, still −26.4% below the high”.

31 August 2026

The KOSPI, tracing the classic speculative cycle

Countless times through history the same pattern repeats in the markets, over and over, and still we never learn.

This time it is the KOSPI, and it has followed the bubble pattern exactly. At the top, a whole generation of investors levered up because they thought a new AI era was coming and the market had no ceiling. It has fallen 43% in six weeks.

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