Taiwan stocks surge 3200 points in 'ultra-violent rebound,' influencer highlights analyst's massive gains

Taiwan's stock market staged a dramatic comeback on Friday, with the main index soaring by 3200 points, sparking widespread discussion among investors. Online influencer Cheap shared his perspective on the surge, labeling it the "most powerful, ultra-violent rebound in history." He reiterated his earlier advice to investors holding broad market ETFs, such as the 0050, to refrain from selling during market dips.

Cheap noted that the market had experienced a significant decline throughout July, describing it as a period where investors felt like "fools." However, positive earnings reports from tech giants like Microsoft and Amazon, coupled with a technical rebound and a surge in TSMC's stock price, led to a broad rally in the electronics sector. He emphasized that his prior warnings against selling ETFs during the downturn were based on historical data, where panic selling often leads to missing out on subsequent sharp recoveries, potentially halving profits.

The influencer specifically praised financial analyst Kuo Che-jung, highlighting his recent investment of NT$100 million in the 0050 ETF. According to Cheap, Kuo Che-jung reportedly gained approximately NT$10 million from this investment on the day of the rebound, calling the analyst "too divine." Cheap playfully dismissed any critics of Kuo Che-jung as either "stupid" or "broke."

The market's strong performance offered a significant turnaround for investors who had held their positions, demonstrating the potential for substantial gains even after periods of sharp decline. The event underscored the volatility and potential for rapid recovery in the Taiwanese stock market.