Taiwan Stocks Plummeted
Taiwan stocks plummeted by nearly 500 points last Friday, foreign capital slashed Taiwanese stocks by 94.4 billion yuan, and TSMC (2330) fell 4.5%. Investors are worried about being afraid. In this regard, Chen Guoqing, deputy general manager of Hongyuan Investment Gu, pointed out that there are four major bubbles in technology stocks in the United States and Taiwan. Investors should be vigilant and refrain from chasing high. It is recommended to switch to undervalued stocks.
Chen Guoqing pointed out that careful selection of stocks and holding profitability are important issues. At this time, high volatility and high price-to-earnings ratio stocks should not be pursued, so as to avoid high points and difficult to solve. In particular, the stock price has risen sharply and is significantly ahead of the fundamentals, and the P/E ratio is too high, including some high-priced stocks and gold stocks such as semiconductors, IC design and machine tools, third- and fourth-line IC design and semiconductor stocks. When people are cautious and fearful and funds begin to transfer to undervalued stocks, stocks with high volatility and high price-to-earnings ratios not only have limited share price gains, but may even undergo sharp corrections.
Chen Guoqing analyzed that there are four major bubbles hidden in US and Taiwan technology stocks. The first is Tesla. Although the future of the electric vehicle industry is promising, Tesla’s stock price has over risen and the bubble has burst. Recently, Tesla’s stock price has fallen from a maximum of 900 US dollars. To 675 US dollars, short-term stock price declines will rebound, but still need to pay attention to subsequent adjustments, Apple and various automakers actively invest in the field of electric vehicles, will put pressure on Tesla car prices and sales.
The second bubble was GameStop and AMC’s short-squeeze case. Although Xiaoximi smashed big whales and Shengdou Xiaomin made a big loss for shorting funds, after the passion, the stock prices of GameStop and AMC, which have no fundamentals, plummeted; the third bubble is encryption Currency, U.S. Treasury Secretary Yellen bluntly said that cryptocurrencies are inefficient and speculative, and are often used for money laundering. He advocates reducing the use of cryptocurrencies. Bitcoin has recently increased volatility, but whether the bubble has burst has yet to be determined.
The fourth bubble is U.S. semiconductor stocks, Taiwan stocks IC design, Qianjin stocks, machine tool stocks, and speculative third- and fourth-rate semiconductor stocks, etc. The stock price has soared to a very high P/E ratio. Be cautious of fear, beware that there is not much rebound, and there is even the possibility of continued correction.
Chen Guoqing suggested that investors who operate electronic stocks with high price-to-earnings ratios can wait for a substantial correction in the stock price before returning to range operations. They can also consider that the stock price has been revised for a period of time and the stock price has a low base period, upward fundamentals, low PE ratio, Related stocks that have recently completed their share price corrections and started to rise, including Evergreen (2603), Yangming (2609) container shipping and other transportation stocks, cement, wind power, steel, paper, plastics and other production stocks, and wafer dual Xiong, AUO (2409), Innolux (3481), Largan (3008) and Yujingguang (3406), lithium battery assembly plants, and midstream and downstream electronics stocks are not only relatively safe, but even profitable.