Taiwan Stocks Surge, Analyst Warns of 'Late Bull Market' Phase

Veteran financial analyst Peter Kurz has issued a stark warning, stating that Taiwan's stock market has entered the "late bull market" phase. He is advising investors to be cautious of potential pullbacks and to adhere to the principle of "not earning the last drop of water."

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My good friend 'Mr. Taiwan' Peter Kurz today issued a strong warning. He warns that the stock market has entered the final late bull market stage, and he urges investors not to earn the last drop of water. He also revealed that he currently holds zero shares! The warning is very strong.

Kurz's concerns were echoed by Hsieh Chin-ho, chairman of Wealth பத்திரிகை Group, who, while believing a market crash is unlikely, stressed the importance of investor focus on portfolio composition and asset allocation. Hsieh noted that the Taiwan Stock Exchange (TAIEX) has surged impressively, nearing the 50,000-point mark, with various analysts setting ambitious targets.

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The Taiwan stock market will not crash. The most important pillar is TSMC.

Despite the market's rapid ascent, Hsieh pointed out that not all individual stocks are overpriced. He highlighted the energy and vitality of Taiwan's market, citing the enthusiasm of investors and the significant daily trading volume, which he described as the "most important driving force." He also referenced comments from NVIDIA CEO Jensen Huang, who praised Taiwanese investors for their eagerness to profit and learn, and AMD's assessment that the AI race is still in its early stages.

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The Buffett indicator is too high, indicating the market is overheated, but it does not necessarily mean a crash, because Taiwan's stock market turnover is large enough.

Hsieh identified Taiwan Semiconductor Manufacturing Company (TSMC) as a crucial stabilizing factor, noting its potential earnings per share. He also pointed to the significant gains in memory chip stocks like SK Hynix, Samsung, and Micron as leading indicators. However, he reiterated that while the overall market trend may be upward with volatility, individual stocks could face sharp corrections, emphasizing that portfolio management and asset allocation are paramount for managing risk.

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The index rising to a certain point is not important, it only represents a direction. What is important is your investment portfolio and asset allocation!