The stock market posted seven consecutive red losses after the U.S. midterm elections. Taiwanese stocks rose even more than U.S. stocks.

The stock market posted seven consecutive red losses after the U.S. midterm elections, with Taiwan stocks rising even more than U.S. stocks. (Source: Bloomberg)

The U.S. midterm elections were held on November 3, local time. Uncertainty over the elections shrouded the Taiwan stock market. Taiwan stocks fell nearly 1,400 points during the session today. However, after counting the nearly 7 U.S. midterm elections from 1998 to 2022, the weighted indexes of U.S. stocks and Taiwan stocks all rose seven times, with average returns of 9.22% and 9.61% respectively. Taiwan stocks rose more than U.S. stocks.

Lin Yijun, manager of Nomura U.S. Innovation R&D Leader ETF (00971), said that it is expected that the market focus will gradually return to corporate fundamentals after the mid-term elections. Recently, technology stocks have been fluctuating due to doubts about the cost of AI investment and recovery speed, but the long-term innovation trend has not changed. As AI applications accelerate and expand, R&D strength and technological competitiveness will become the key to corporate profit growth. In addition to AI chips and cloud computing, healthcare, automation and innovative applications also have development potential. It is recommended that investment strategies focus on industry leaders with continued growth in R&D investment, technological advantages and profitable growth momentum.

You Jingde, manager of Active Nomura Taiwan Select ETF (00980A), also said that Taiwan plays a key role in the global AI supply chain. As cloud service companies expand capital expenditures, they continue to be optimistic about AI servers, advanced processes, advanced packaging, high-speed transmission and cooling and other industries. However, technology The evaluation of technology stocks is at a relatively high level. The market will pay more attention to order visibility, corporate profits and the rationality of evaluation. Operations will focus on companies with technical thresholds, competitive advantages and profit growth potential, and will flexibly adjust shareholdings in accordance with changes in industry trends and fundamentals to grasp investment opportunities brought about by market fluctuations.