The Taiwan Index futures surged by more than a thousand points in the night trading. Retail investors were waiting. The equity-to-earnings ratio of the legal person stand is reasonable and the room for decline is limited.

[Reporter Zhang Huiwen/Report from Taipei] Bad news comes one after another! The Dow Jones fell 0.3%, the S&P fell 1.1%, and the Nasdaq fell 2.1% last Friday. The Fed fell even more by 3.8%. The cumulative drop in a single week was 11.4%. The Taiwan Index futures surged 1,144 points in night trading on Friday. , closing at 46,140 points, retail investors shouted "wait for it on Monday"; many legal persons believe that it is indeed possible to open lower on Monday, but the P/E ratio of Taiwanese stocks is reasonable and the room for decline is limited. Don't bet on stupid stocks. At the same time, you can enter the market in batches if there is a heavy fall, but pay more attention to the liquidity of the funds in hand.

According to legal analysis, the Nasdaq fell 2.14% and the Fed fell 3.83%, both hitting new lows in the past month. However, the performance of the Dow Jones was relatively stable, especially the stock prices of JPMorgan Chase, Coca-Cola, Walmart and Chevron. This shows that the current U.S. stock market is a structural divergence rather than a systemic selling pressure. Faced with the break of the mid-term low, the legal person also said that judging from the linear shape, it is a backtest of the September low. Coupled with the downward curve of the quarter line, if there is no favorable news to assist, it will need to retreat to the bottom.

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Hu Ruihan, chairman of Yuanta Investment Consulting, said that the correction in the U.S. stock market in mid-to-late October cannot be ignored, because the correction of technology stocks was caused by "AI stocks with the highest market valuation at the time" and the problem started when "corporate debt began to explode." She believes that the decline in U.S. stocks will certainly affect Taiwan stocks, but Taiwan exports "AI hardware systems" "Made", to put it simply, "AI heart CPU", "AI computing GPU", "AI server", etc. are made using TSMC's advanced processes. The Chinese Academy of Economics has revised Taiwan's GDP this year to 12.16%, a record high in the past 39 years. This is proof of Taiwan's long-term economic strength, and the stock market is safe in the long run! However, we still need to pay attention to whether next year will be the year when AI stocks "eliminate the bad and retain the good". In the future, it will be more important to look at the "ROI return on investment" when investing in AI stocks.

Kuo Ming-yu, the proposed manager of Yushan Taiwan Key Technology Active ETF (00413A), said that from the perspective of Taiwan's overall economy, the General Accounting Office estimates that Taiwan's GDP growth rate this year is expected to reach 11.05%, a record high since 1988, and is still expected to maintain 6.04% growth momentum next year, showing that AI-driven exports, investment and corporate capital expenditures continue to support Taiwan's economic growth. From the perspective of evaluation, the current market valuation has not significantly deviated from the fundamentals. Generally, the price-to-earnings ratio of growth companies falls in the range of 25 to 30 times. The Nasdaq index is currently about 31 times. In comparison, the price-to-earnings ratio of Taiwan's weighted index is about 21 times and that of electronic stocks is about 23 times. The evaluation is still at a relatively reasonable level.

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