Taiwan is a small island with a big manufacturing output. This makes investing in Taiwan attractive to many who are looking for portfolio diversification.
Just look around your home. Most of the things you have around you were made in one of two countries; China or Taiwan.
Your bicycle was likely made in Taiwan. Many of the technological components in your phone, computer, and TV were probably made in Taiwan.
And all of this manufacturing to support a global market leads to massive profits for many major corporations. And the investors in those corporations get to receive their fair share as well.
Investing abroad is a must for any smart investor. Stocks from outside of your nation help to balance your portfolio against local volatility and political turbulence.
So why should Taiwan be at the top of your global investment list? Keep reading below to find out now.
Huge Economic Output
Taiwan is a country of exports, as can be seen by the number of Taiwanese products in your home right now. It has the 39th highest GDP per capita, making it one of the most financially productive regions of the world.
Taiwan also has the world’s 8th largest economy and has 6th freest economy when discussing business, monetary, and labor freedom among other factors.
The economy of Taiwan is independent, yet very correlated with the Chinese economy. So when China is doing well, Taiwan is often soaring, too. Free trade agreements like New Zealand and Singapore are helping Taiwan to diversify, so it’s not totally dependent on China.
Many large manufacturing corporations live here. Most of the worlds’ motherboards and PCs are built here. And much of the countries output is materials and components that are then shipped to China and assembled into final products, to be sold to markets like the US and Japan.
Smart investing opportunities abound in Taiwan. They have one of the largest and most active stock markets in all of Asia.
A majority of companies listed on the Taiwanese stock market are part of the financial, communications, tech, and semiconductor industries. And 10 of the largest companies are listed on American stock exchanges to make it easy to attract foreign investment.
One of the largest companies in the world, and the biggest in Taiwan, is the Taiwan Semiconductor Manufacturing Company (TSMC), responsible for the vast majority of semiconductors. Others include MediaTek, Foxconn, and Cathay Financial Holding.
Anyone Can be Investing in Taiwan
Investing in Taiwan is a smart business move, whether you are an individual investor or a large financial firm. And anyone can do it with ease.
If the 10 companies listed on the US stock exchanges aren’t enough, consider investing with a company like Monex Securities. Visit monexsecurities.com.au to invest in 12 Asia-Pacific markets with one account.
Investing in Taiwan is part of a global diversification strategy. By holding stocks from companies around the world, and in different industries, your portfolio can be extremely well-balanced, ensuring any turbulence is nothing but a blip on your radar.
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