Changes are afoot in Taiwan that could impact its exchange traded fund (ETF) in a postive way.
A presidential election is going to take place on March 22, and the odds-on favorite to win is Ying-jeou Ma, a candidate from the pro-business and less China-averse political party, reports Michael Zhuang for Guru Focus.
China and Taiwan’s relationship has been tense. China wants to reconcile on its own terms, while Taiwan is divided over whether to stay separated or leave the door open to patch things up.
The outgoing president favored total separation, and the government has been blamed for hampering economic interactions with China and causing the Taiwanese economy to suffer while China was growing by leaps and bounds.
Now that a new leadership is going to come in, investors are liking the looks of Taiwan a little more these days, says Andrew Batson for the Wall Street Journal. In February, the iShares MSCI Taiwan (EWT) went up 10.4%. Its currency has been rising in value, as well, and is seen as evidence that more money is coming into the country.
Better days could lie ahead for this country if they play their cards right.
For disclosure, some of Tom Lydon’s clients own shares of EWT.