Following a record drop in Taiwan stocks, TaiwanPlus spoke to Taipei-based market analyst Hsiao Yu-ming about what may lie ahead for both the Taiwan and global markets.
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00:00We've just witnessed the largest selloff in Taiwan's stock market in history.
00:04What are some reasons behind people losing trust in the market?
00:30As of today, we've seen massive selloffs, not just in Taipei, but also in Asia, including Japan and South Korea's Caspian Sea.
00:42The main reason is that the market will send out, for example, stocks like Buffett, Apple, or Iran, which may launch an attack on Israel at any time.
00:53Is the situation possible to turn around in the short term?
00:57I'd like to share with you the VIX, V-I-X, VIX panic index.
01:02The VIX panic index itself is a forward indicator.
01:06If the VIX goes up, then you can expect that the next securities market, whether it's in US stocks or in the Taipei stock market, will go down.
01:18If the VIX panic index drops to 22 tonight, we expect that the entire securities market, whether it's tech stocks or not, will change dramatically and go up.
01:30In the global market, what may be up for change in the coming months?
01:34When you find that whether it's in Taiwan, in the Asian region, or even in the U.S. stock market, if it starts to go down, then you have to be careful that the whole so-called empty-side correction is going to take place.
01:49The September 18 joint meeting, we expect, will not rule out the possibility of a direct decline of 2-3.
01:56That's why we've seen that since July, whether it's the entire international stock market or the Taipei stock market, there's been a decline in the entire Asian region.
02:06We expect that the worst case scenario will drag on until the end of August or the beginning of September, when there's a clear chance of a turnaround.