I was reading one of the research reports citing Taiwan stock market is one of the Asian's most overvalued markets, selling above 60 times PE. To my surprise, it has been able to keep its head above 7,000 points and many are still cheering 10,000, 10,000, 10,000 points........ I should have knew that Asian stock markets are some sort of casinos anyway. My friend told me that recent Taiwan government tax cuts successfully lures billion of dollar back to Taiwan. When money is flowing, stock and property markets surely are the regular inlets of gambling. Don't get me wrong, it will end with tears, but the point is --- sometimes, fundamentalist will be boxed in a corner seeing other people laughing, partying making easy money but giving in at the wrong time will earn you a crown: the Idiot of the Universe.
TAIPEI, Taiwan -- Taiwanese are repatriating money at an unprecedented rate after the government lowered the inheritance tax and ties with mainland China improved, boosting stocks, bourse Chairman Schive Chi said.
Citizens brought home US$6.7 billion in the second quarter in addition to US$9.9 billion in the first quarter this year and US$10.6 billion in the fourth quarter last year, the Taiwan Stock Exchange's Schive said, citing information from the central bank.
This has “never happened before,” he told Bloomberg Television in an interview yesterday. “You can see several very promising developments.”
http://www.chinapost.com.tw/business/asia/b-taiwan/2009/08/28/222436/Taiwan-lures.htm
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