Taiwan Stocks Are Looking Good Again

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October 21, 2018 7:23am NASDAQ:MCHI

From Dana Lyons: Taiwan’s stock market is hitting interesting long-term levels.

The global equity correction has unleashed some not insignificant damage on a lot of international markets. It also has (potentially) produced opportunities. Last year was a good year for emerging markets, with several individual countries seeing major breakouts. This year has been a different story as several of those markets have pulled back to test, or lose, their respective breakout levels. One of the more interesting developments comes from Taiwan’s stock market.

As we posted last year, Taiwan’s benchmark Cap Weighted Stock Index (TAIEX) had formed a series of peaks near the 10,000 level stretching all the way back to the mid-1990?s. In June last year, the TAIEX broke out above that base, potentially opening the way to a new long-term bull market. As we surmised, however, the index was likely to test that level before it was ready to embark on a sustainable new bull. Such a test may be underway now.


So is this the epic opportunity that it appears to be? In a Premium Post at The Lyons Share, we lay out what exactly to look for here and how to take advantage of it.

If you’re interested in the “all-access” version of our charts and research, we invite you to check out our site, The Lyons Share. FYI, TLS is currently running a SALE to commemorate the 1987 market crash that occurred exactly 31 years ago. The SALE ends October 21 so considering the discounted cost and the current treacherous market climate, there has never been a better time to reap the benefits of our risk-managed approach. Thanks for reading!


Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.

The iShares MSCI China Index Fund (MCHI) closed at $53.55 on Friday, up $0.77 (+1.46%). Year-to-date, MCHI has declined -19.52%, versus a 3.93% rise in the benchmark S&P 500 index during the same period.

MCHI currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #9 of 38 ETFs in the China Equities ETFs category.

This article is brought to you courtesy of Dana Lyons, JLFMI and My401kPro.

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