The market is worried regarding the economic recession and continues to impact the stock market. Taiwan stocks fell 363 points today (6) days, falling below Wansi to close at 13,985 points. The legal person generally believes that the current market trend is mainly controlled by the chips and technical aspects, and it may be difficult in the short term. Seeing the signal of breaking the bottom, it is not yet the time to connect to the bottom.
Li Yongnian, an analyst at Enlightenment Investment Advisors, said that the decline in Taiwan stocks is not only related to international stocks, but mainly due to the psychological factors of weakening confidence in the stock market, which in turn triggered panic selling pressure. The pressure has not been released yet, so the short-term is not the time to connect low.
Li Yongnian pointed out that when the stock market has bottomed out, his suggestions can be viewed from several aspects, including when the US inflation will slow down and when the panic selling pressure will be released. When the panic selling pressure is almost exhausted, the market is expected to stop. Bounce back.
Lai Zhenghong, manager of the Satisfaction Fund of PGIM Prudential Gold, believes that the sluggish investment sentiment in Taiwan stocks has been continuously released by the stop-loss and share-swap selling pressure on the disk, causing the index to fall below the 10,004 level all the way, and there is no significant drop in the process of rapid decline. After the rebound, the stock prices of blue chip stocks might not escape the downward trend.
Lai Zhenghong said that due to the release of important information such as CPI and the minutes of the Federal Reserve meeting in July, and the financing maintenance rate of Taiwan stocks is still relatively low, it is expected that the index will continue to fluctuate repeatedly to test the bottom, reflecting the market’s doubts regarding the economy and inventory adjustments.
Lai Zhenghong said that in the short-term, we will first see whether the Fed will maintain a positive attitude of raising interest rates at the Fed meeting. In particular, the prices of bulk raw materials have all fallen recently, which is expected to ease the market’s concerns regarding high inflation.
According to Lai Zhenghong’s analysis, Taiwan stocks continue to reflect the cooling down of the economy and the downward revision of corporate evaluations. At this stage, the layout should be undertaken in batches, and it is not advisable to rush forward and focus on industries or individual stocks with deep declines and promising prospects.
