EWT Stock Recent News
EWT LATEST HEADLINES
Taiwan's Economic Outlook: A Challenging Year As Global Semiconductor Sales Slump.
EWT owns a portfolio of Taiwanese stocks. The fund has a high exposure to technology stocks and hence may be more volatile than the S&P 500 index.
Taiwan's export-driven economy has been hit by slumping exports, resulting in GDP contracting by 0.9% year-on-year in the fourth quarter of 2022. Strong exports had been a key driver of Taiwan's rapid economic growth during 2021 and the first half of 2022.
The policy update doesn't contradict the broader goals for Common Prosperity; the priorities have been reset and focuses rebalanced to tilt toward managing risk while reviving growth. I do not foresee major changes in monetary policy, which has been moderately accommodative for the past two years.
The outlook for semiconductors is tepid in 2023, driven by a slowdown in economic activity. With its major exposure to the largest semiconductor industry in the world, the EWT ETF is bound to feel the pressure.
Berkshire Hathaway bought $4B of Taiwan Semi in 3Q.
EWT is dictated primarily by the situation in the semiconductor industry, which has gone from undersupply to a potential oversupply. Moreover, political and strategic concerns over semiconductors are getting in the way of an already unfavourable free market.
The basic power division in China is between the Party and the state apparatus. The most interesting personnel changes will be those affecting members of the Politburo Standing Committee.
Chinese economy may do modestly better in the second half of 2022. Longer term, the primary headwind for the Chinese economy lies in demographic patterns.
China's grayzone blockade of Taiwan and occupation of the Taiwan Strait illustrates the growing risks of the Taiwan market. Taiwanese equities are dominated by semiconductor stocks, which will continue to face global macro headwinds.