Taiwan Stocks Hit Record Highs, but Retail Investors Remain Cautious; May Confidence Hits 3-Year Low

Central News Agency, Taipei, May 27: The National Central University's Taiwan Economic Development Research Center announced today that the Consumer Confidence Index (CCI) for May was 62.08 points, a slight decrease of 0.39 points. Professor Wu Da-ren of the Department of Economics at National Central University analyzed that while the market's reaction to the Middle East conflict has dulled and the surge in Taiwan stocks has diluted other negative factors, the repeated record highs have led investors to adopt a 'cautious at high levels' mindset. In the May CCI, among the six sub-indices, only the price level index rose, while indices for family economic conditions, domestic economic climate, employment opportunities, stock investment timing, and purchase of durable goods all declined. Notably, the 'timing for stock investment in the next six months' fell by 1.03 points to 22.06, the lowest level since February 2023. Professor Wu explained that this decline does not necessarily mean investors are bearish on the current market, but rather reflects a cautious mindset, with many believing the market is at a high point and prone to correction. However, he noted that the market remains very active, with some investors even showing 'FOMO' (fear of missing out) behavior, such as taking out additional home loans to invest in stocks. This has led to a 'decoupling' of stocks and real estate. The real estate confidence index for May also hit its lowest level since June 2020. Professor Wu emphasized the need to closely monitor developments in the Middle East and US monetary policy.