Moon Kil Woong - Activity Feeds
Executive Officer at SME
Contributor's Links: Seeking Alpha Profile

Moon Kil Woong is currently a VP at a SME. Previously he was a tech stock consultant, VP of Research at ING, and sell side Director at Crédit Agricole Indosuez. Moon Kil Woong has a Masters in Public Administration from SJSU.

Activity Feeds

3 days ago
Commented on Is There a Size Effect in the Stock Market?:

The market is driven by general rules but is also driven by perception. The very large caps have performed better than the large and medium sized companies in recent years. They even outperformed small caps in various times. This has been driven by the sense of increased safety and liquidity it offers along with being a favorite of managed and mutual fund managers. Is this a long term abnormality? In tech I think not, large cap companies are able to more easily effect change and innovation in the industry and often buy and build out successful technologies these days.

As for the rest of the market, most likely. The other issue is small companies have been hurt most by rising health insurance and regulations. Thus, the environment for small caps have not been all that great and this sector is one of the sectors who have most benefited by Republican pushes to roll back regulatory constraints and paperwork. As I mentioned, this is a moving target, thus one study or even a series will not always be right about this sector compared to others. Indeed, if there is heavy anti-monopolistic regulatory action in Washington many big caps will suffer and things can move heavily towards small caps again not because they are growing stronger but because large caps may be seen as riskier decreasing their appeal.

9 days ago
Commented on Market Snoozes, But Keep Your Tools Close By:

China worries still are at the forefront recently. Until some resolution is done the threat of more tariffs, a weaker global economy, higher inflation, and higher interest rates will keep the market from moving up strongly.

9 days ago
Commented on Why US Financial Regulators Are Unprepared For The Next Financial Crisis:

The good news is unless the banking sector is tied to these shadow institutions and are not declared TBTF then at least the taxpayer is off the hook unless the bureaucrats agree to pilfer the government and taxpayer to bail them out.

I do not think this will boil over anytime soon. First you will see the very leveraged housing market and all the gambling on property go under along with the heavily indebted cash flow negative companies go under like smaller players in the oil sector. The good news is the Federal Reserve is at least cutting down some of their balance sheet and has raised interest rates modestly. Something is better than nothing.

We may hit bad times in about a year and a half or maybe we won't. The issue is, are central banks planning for the inevitable cyclical downturn. Sadly, too few of them are.

9 days ago
Commented on Who Will Feed The LNG Monster?:

Getting rid of coal is a good thing. As for natural gas, production and demand are both growing phenomenally. Although it looks like gas is going to outstrip demand, it is only for the short term. That is why, unless a company is hurting for cash, it is frankly stupid to be increasing production now. It is much more valuable later.

9 days ago
Commented on Have Central Banks Lost Credibility?:

Sadly Japan is in a QE hole they can pretty much never get out of without a serious collapse in their economy. Their economy is dependent on the funny liquidity and their markets are increasingly driven by it and the government. This is why their economy doesn't ever recover. Their people's future is not in their own hands thus it is hard for businesses to bet on what they can't control. Thus understandable no one wants to invest in growth.

9 days ago
Commented on Should We Really Not Worry About The Fed’s Balance Sheet?:

The limited reversal of a fraction of QE is a good thing. The rise in rates was more the Federal Reserve echoing the higher rates in the market than the Federal Reserve dictating interest rates. The simple fact is tariffs and tax cuts more than systemic demand caused inflation.

The Federal Reserve was right to raise rates and the US is much safer in a downturn for doing so. That said, they can let off the wheel if the trade war ends. If not, they will likely have to raise again because they are not dictating rates, merely following higher rates as lenders deal with inflationary pressures.

As for QE, they should keep cutting it until it shows some adverse effect in the market. Cutting QE is more important than raising rates in my book. It should have never happened in the first place.

10 days ago
Commented on Visualizing The World’s Most Valuable Bank Brands:

LOL Well Fargo having the most valuable bank brand in the US. Yes it has a large intangible value on its books, but if anything it shows how wrong it is to determine real brand value based on this accounting methodology which was never created to portray real brand value or much of anything else. Sadly, Wells Fargo probably has negative brand valuation and is why they have been advertising "the new Wells Fargo" as a marketing gimmick "which according to employees it largely is.

10 days ago
Commented on Why The Left Isn't Convinced By Your Economics Arguments:

It didn't work for Reagan. He ballooned the deficit. The only reason it seemed ok was the US could afford the increase in deficits better than today. What really is needed in tax cuts is tax cuts to small businesses and the middle class offset by spending cuts in government and/or the wealthy. This would stimulate the demand side as well as the supply side of the equation even if it didn't completely balance the cuts with income increases and spending cuts.

The simple fact is economics is not simply about money and what you can do with it. It is balanced with the need to grow real demand and grow real supply. If you can grow both your people will be better off and the economy will be better off. This is why QE fails. It doesn't encourage real demand and doesn't encourage real growth in production. You need to do things to increase one or the other side of this equation. Sadly it doesn't even improve investment and capital expense. These two things facilitate income growth, prosperity, and stability as well as efficiency on one end and increases in productive capacity, production, invention, and sometimes increased employment on the other.

10 days ago
Commented on Why The Left Isn't Convinced By Your Economics Arguments:

I agree we should do more to prevent monopolies, especially mega banks which end up causing taxpayers money in downturns. That said, anti-monopolistic regulations are a workable solution which is far better than socialist/communism that creates rather than destroys monopolies. The issue is, in such countries, you aren't even allowed to protest them without often dire consequences.