Taiwan's response to the 34% tariff increase by the United States! Experts predict “Taiwan's stock market may crash 1,800 points next week,” and the situation is not surprising.
讀後心得
Financial writer 狄驤 predicts that due to the high tariffs imposed by the United States on Taiwan and China, the Taiwan stock market may open with a drop of 1,800 points next Monday (the 7th), and it could even face a collapse of 2,000 points. He advises investors to pay attention to risks and to appropriately increase their cash ratio or allocate assets for hedging. As the trade war escalates, market uncertainty is also on the rise, and investment decisions should be carefully evaluated.
The financial center reports that Taiwan's stock market is expected to open conservatively down 1,800 points next Monday (the 7th). The President of the United States announced equivalent tariffs on global trading partners, imposing a 32% tariff on Taiwan and a 34% tariff on China. In response to the U.S. measures, the Ministry of Finance of China announced additional tariffs of 34% on all U.S. goods starting from the 10th.
A financial writer stated that according to market trends, if the closing price on Friday still shows no recovery from the drop, the opening next Monday is expected to see a decrease of 1,800 points; if there is also pressure from margin calls, a drop of even 2,000 points might occur. The writer mentioned on social media that the U.S. had previously warned countries against retaliatory tariffs, or they would face higher tariffs, but China chose to strike back.
He believes that the importance of non-farm employment data has diminished with the escalation of the trade war, and more countries may yield to pressure in the future. He also noted that while a short-term market bottom may appear, it is unwise to bet on a rapid recovery before that happens. In the opening forecast for next Monday, investors should pay special attention to the fact that the reasons for the market's significant drop are entirely different from those in the past.
He reminded investors that before attempting to bottom-fish, they should consider the risks of breaking lower, and in the face of increased market uncertainty, it is very important to raise cash proportions or allocate to hedging assets.
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