FLTW - FLTW: Taiwan Gets The Post-Election Green Light

2024-02-13 11:47:41 ET

Summary

• Recent events in Taiwan have eased the geopolitical overhang.
• Taiwan still isn't cheap, but few other Asian countries offer anywhere near the long-term earnings growth and return potential.
• As the lowest-fee single-country play, FLTW is worth a look for 'picks and shovels' tech exposure.

Elections in Taiwan are done and dusted, with the incumbent Democratic Progressive Party (DPP) retaining the presidency through former Vice President, Lai Ching-te. While the victory margin was more decisive than many had anticipated, there were some important caveats, including that the DPP lost its majority in parliament. In essence, Taiwan will now have a divided government - for the first time in two decades. The good news for Taiwanese large-caps, on the other hand, many of which are tech exporters, is that the status quo 'truce' established at November's Asia Pacific Economic Cooperation (APEC) forum is also likely to prevail post-election....

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