In late October 2026 I posted a series of X replies analyzing market dynamics across India, the United States and South Korea. The discussion covered tax policy, investor composition, market rationality, corporate behavior, concentration in the U.S. “MAG 7” stocks, Indian retail allocation, and recent KOSPI performance.
I argued that lower taxes could be a tool for India to compete globally, citing the high‑tax environment in California that is driving billionaire out‑migration.
World Bank’s Neelkanth Mishra countered that tax cuts “won’t bring foreign investors back,” emphasizing rule complexity and return differentials as primary issues.
A quoted X user wrote “No‑ for India. Now we are more DII than FII,” indicating domestic institutional investors now dominate foreign ones.
Another participant noted “markets are generally rational.”
I observed that “our largest companies became lethargic, cautious and refused to innovate or invest.”
U.S. large‑cap returns are driven almost entirely by the “MAG 7” (Meta, Apple, Google, Amazon, Microsoft, Nvidia, Tesla), and the X7 index (S&P 500 excl. MAG 7) underperforms the SML Index (S&P Small‑Cap 600) over most long‑term periods.
In India, 75 % of retail money is in mid‑ and small‑cap stocks, a pattern that inflates valuations to levels comparable with the NASDAQ.
YTD KOSPI is up 36 %; Samsung + Hynix contributed 32 %, while the rest of the market rose only 4 % and 563 of 822 stocks are negative.