High Interest Rates May Last Longer, Investor Advised to Hold Cash for Bargain-Buying Opportunities

Investors should stop trying to predict every twist in the markets and instead prepare for several possibilities, Oh Geon-young, head of Shinhan Premier Pathfinder, said. “When it is hard to see even one step ahead, it is better to respond flexibly than to try to make predictions,” he said.

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When it is hard to see even one step ahead, it is better to respond flexibly than to try to make predictions.

Oh described the current period of sharp movements in interest rates, exchange rates and share prices as a time to adapt to a “new normal.” He compared portfolio planning to carrying both an umbrella and straw sandals when it is impossible to know whether the sun will shine or rain. His advice was straightforward: keep cash available for opportunities to buy assets at lower prices and spread investments across a range of holdings.

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This is a period to adapt to a new normal.

He also warned that high interest rates could last longer than expected. South Korea’s KOSPI began the year in the 4,000 range, surged into the 9,100 range, then fell back into the 5,000 range before rebounding. The won-dollar exchange rate likewise appeared to settle in the 1,500-won range from May through July before falling into the 1,300-won range as the won strengthened.

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When you cannot know whether the sun will shine or it will rain, you should carry both an umbrella and straw sandals.

Oh said stock prices and exchange rates had moved far outside ranges that seemed familiar just a year earlier, only to return toward them. He is scheduled to speak at the 2026 Donga 재테크 Show at COEX in Seoul’s Gangnam district on the first and second of next month.

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High interest rates may last longer than expected.