Taiwan imposes a 34% tariff in retaliation against the United States! Experts predict "Taiwan stocks will plummet 1,800 points on Monday": This situation is not unexpected.
Financial writer 狄驤 predicts that the Taiwan stock market may open down 1,800 points next Monday (the 7th). The reason for this is the high tariffs imposed by the United States on Taiwan and China, while China plans to impose tariffs on American goods. 狄驤 points out that if the market situation continues to deteriorate, the decline could further expand to 2,000 points. He reminds investors to increase their cash ratio or allocate to hedging assets to cope with uncertain market risks.
Financial writer 狄驤 pointed out that the Taiwanese stock market is expected to drop 1800 points when it opens next Monday (7th). The U.S. President has announced equal tariffs on global trade partners, with a tax rate of 32% for Taiwan and 34% for China. In response, the Chinese Ministry of Finance has decided to impose an additional 34% tariff on all American goods starting from the 10th.
According to 狄驤's analysis, if the decline does not show signs of easing by Friday's closing, the Taiwanese stock market faces the expectation of a drop of 1800 points. He stated that with the additional pressure from forced selling in the market, a collapse of even 2000 points could occur.
On his Facebook fan page, 狄驤 mentioned that the U.S. warned other countries not to retaliate to avoid facing higher tariffs, but China chose to retaliate. He believes that the importance of non-farm payroll data has decreased, as the uncertainty of the trade war continues to increase.
狄驤 pointed out that the escalation of the trade war may force more countries to yield, which could accelerate the bearish situation in the market. Therefore, even if a potential short-term bottom appears, he still does not recommend betting too early.
He reminds investors to assess potential risks, including possible declines, before considering entry into the market. He emphasized that market behavior is often difficult to predict and decisions should not be made solely based on the notion of "having already dropped enough."
狄驤 suggests that investors should increase their cash ratio or allocate to hedging assets to cope with uncertain market conditions.
