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Analysts Advise Caution in September; Expect Bullish Turn by Mid-October
Finance · Investment Managers · economic_daily · 2026-09-05
Market experts suggest a defensive stance for Taiwan stocks in September due to seasonal headwinds, recommending a shift to aggressive buying by mid-October.
What Happened
Market Volatility Outlook: Analysts at Uni-President Securities warn that the Taiwan stock market is likely to face a range-bound consolidation in September. Five major headwinds, including seasonal weakness in U.S. markets, Fed rate concerns, and geopolitical risks, are expected to keep the index fluctuating around the quarterly average.
Defensive Strategy: Investors are advised to adopt a cautious "wait-and-see" approach, maintaining a lower equity exposure of around 40%. Defensive assets such as high-dividend stocks and financial sector holdings are recommended to mitigate potential downside risks during this period of uncertainty.
Mid-October Pivot: A market turnaround is anticipated by mid-October as U.S. tech earnings reports are released and Apple's new product cycle gains momentum. AI and Apple-related supply chain stocks are expected to lead the recovery, marking an ideal entry point for an aggressive investment strategy.
Long-term Bullish Thesis: Despite short-term turbulence, historical trends following U.S. midterm elections suggest a strong bullish cycle ahead. Projections for the Taiwan market remain optimistic, with targets set for 50,000 points in Q4 and further growth into next year, encouraging investors to remain patient.