■ Bank of America’s warning
On March 11, 2026, Bank of America (BofA) stock strategists defined KOSPI as a "typical bubble". Key evidence: - KOSPI plunged 12% in the short term and then rebounded 10% - Similar to the Asian foreign exchange crisis, dot-com bubble, and 2008 financial crisis - Based on BofA's own bubble index, KOSPI is the most extreme bubble among major assets - The level of bubbles is more severe than that of gold, silver, Brent oil, and commodity indices. Same market, mixed diagnosis: - BofA: "Typical bubble. Signs of overheating are clear." - Goldman Sachs: "Adjustment within long-term upward trend. Year-end KOSPI 7,000 outlook maintained."
■ What do individual investors do when BofA calls it a bubble?
Insurance companies have known this formula for a long time. “People don’t prepare even when they see a crisis signal.” When BofA declares KOSPI to be a bubble, individual investors: Reaction 1 — “It’s already fallen a lot, so it’s an opportunity to buy at low prices” → Buy more Reaction 2 — “I know what Wall Street doesn’t know” → Maintain holding Both reactions are structural traps. The most dangerous thing in the bubble section is the illusion that it has already fallen.
■ Relational risk was known before BofA
BofA analyzes price action. Relational risk analyzes executive networks, CB conversion patterns, and governance changes. Before the price plunges, signals already appear in the network: - Executives are replaced en masse - CB conversion claims are concentrated - Major shareholders' shares are quietly reduced These signals do not appear in financial statements. They are not included in BofA's bubble indicator. Only relational risk analysis captures them.
■ Empirical data - AUC 95.1% - 85.9% of 276 KOSPI·KOSDAQ trading suspensions captured in advance
Coverage: 3,109 companies / 49,446 executives Now that the bubble warning has been issued, is your network of stocks safe?
■ Conclusion BofA looks at price.
Relational risk looks at relationships. When the price sends a signal, it is already too late. When the relationship sends a signal, it is time for action. When the financial statements are intact, the signal has already started.
■ Reference materials
RaymondsRisk White Paper: https://www.konnect-ai.net/whitepaper Service: https://www.konnect-ai.net
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Risk spreads through relationships.
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