The Kospi index is the leading indicator for the global AI trade — and Goldman just slashed its forecast by 25%

The Kospi index, which tracks South Korea's stock market, has become a bellwether for the global AI sector, and Goldman Sachs recently cut its forecast for the index by 25%. This significant reduction stems from a decrease in the growth multiple investors are willing to pay for AI stocks and an increase in market volatility. The move by Goldman's strategist Tim Moe underscores the growing caution in the AI sector as investors reassess risk and return. This shift is crucial because South Korea is a key player in the global AI market, so changes in the Kospi could signal broader trends affecting AI investments worldwide.