The trend of bottom fishing funds in US and South Korean stocks: Retail investors reverse the trend and increase their holdings in AI stocks, with Morgan Stanley stating that further downward space may narrow BlockBeats News: On October 23rd, global stock markets experienced a new round of selling, and doubts about AI capital expenditures and investment returns once again heated up. The situation in the Middle East and rising oil prices also suppressed risk appetite. According to data from the Korea Financial Investment Association, the forced sale amount of stocks on October 21 was 12.9 billion Korean won, lower than the previous day's 22.6 billion Korean won; From October 13th to 19th, the daily forced selling amount exceeded 50 billion Korean won for five consecutive trading days. At the same time, the balance of credit financing decreased to 30.271 trillion Korean won, and investor deposit fell to 89.6343 trillion Korean won, the first time in about 9 months that it fell below 90 trillion Korean won. South Korean chip stocks are experiencing foreign capital replenishment. As of October 21st, foreign investment has net purchased Samsung Electronics for four consecutive trading days, with a cumulative amount of 1.3247 trillion Korean won; Previously, it sold approximately 7.8 trillion Korean won on a net basis for 12 consecutive trading days. SK Hynix converted to a net purchase of KRW 200.6 billion on October 21 after 18 consecutive days of net sales by foreign investors. However, analysts caution that this change cannot yet be recognized as a trend driven improvement in funds. In the US market, Morgan Stanley strategist Arun Jain tracked trading traffic from October 15th to 21st and found that retail investors increased their purchases of semiconductor, new cloud, and storage companies, while technology stocks reached their highest level of buying since the momentum trading reversal in July. The most bought targets were SanDisk, TSMC, and Nebius. The weekly inflow of funds into technology ETFs reached the second highest level in history, with a record single day inflow on October 16th. Institutional positions are crowded with short positions. According to Goldman Sachs' prime brokerage data, the ratio of short selling size to long buying size of stocks is about 5:1, and the short leverage in client books is at the 99th percentile of the past 5 years. The net leverage of fundamental long short stock funds is close to a three-year low, but the total leverage has increased. Goldman Sachs warns that if there is a catalyst driving up technology stocks, crowded short positions may be forced to be filled, posing a potential risk of short selling. Regarding whether it is close to the bottom buying window, JPMorgan strategist Nikolaos Panigirtzoglou and his team believe that hedge funds have significantly reduced their stock risk exposure, and after some of the funds that previously drove the rise withdraw, the market's space for further concentrated selling impact may narrow. The team regards semiconductors as an important indicator for observing fund risk exposure, but at the same time points out that AI investment returns, financing pressure, and position concentration are still risks, and reducing selling pressure does not mean that the market has hit bottom.