In November 2022, Taiwan’s business climate countermeasure signal fell into the blue light representing “downturn”, which is the first time since 2018. Although experience shows that it is not easy to quickly flip after the blue light appears, the four boom times in 2000, 2008, 2011, and 2015 During the downturn, the longest ever was blue light for 15 consecutive months. However, if you think about it from the perspective of the economic cycle, Zhitu Laoma often regards the appearance of the blue light as a signal of crisis to enter the market, and petty bourgeoisie can also seize the opportunity. The longer it is, the more cheap 0050s you can buy, allowing your red envelopes to grow even more.
Since the listing of 0050, the prosperity light has fallen below the blue light 34 times. If the first blue light appears, the monthly fixed amount of 0050 will be fixed every month. The average return rate of 1 year can reach 8.9%, and the winning rate is 88% %; the average rate of return for 2 consecutive years can reach 17.1%, and the winning rate is 97%. Even if you don’t have such “persistence” and just buy in the month when the blue light appears, the average rate of return after one year is as high as 22.1%, and the winning rate is 94%.
In fact, in the past 30 years, Taiwan stocks have never had a record of falling for two consecutive years, and the following year usually has a considerable positive return. This is due to the long-term competitiveness and high yield advantages of index companies, which support the resilience of stock prices. 0050 uses the top 50 stocks with the largest market value in the market as constituent stocks, and will regularly eliminate the weak and retain the strong, following the growth of the Taiwan stock industry. Compared with industrial and theme ETFs, it has the characteristics of “never miss the market” when the market rebounds It is more suitable for the layout at a relatively low point in the stock market. It is also seen that Taiwan stocks will plummet by 22.4% for the whole year in 2022, but investors are buying 0050 more and more.
In 0050, the year of the tiger closed at 118.1 yuan, and it cost about 110,000 yuan to buy. If you want to “buy with small capital”, the investment experts recommend the following methods, which can make small investments and help enlarge the red envelope.
1. Odd Lot Trading
A stock has 1,000 shares, and fractional share trading allows investors to enjoy more flexibility. Buying one share in 0050 only costs more than 100 yuan, and you can become a shareholder of 0050. Moreover, 0050 is very popular and the trading volume is sufficient. The stock exchange has further shortened the odd-lot transaction matching time to 1 minute on 2022/12/19 to promote liquidity in the investment market and be more friendly to small investors.
2. 0050 Linked Funds
Yuanta Investment Trust, the issuer of 0050, has launched “0050 ETF Linked Fund”. Such as Jifutong) purchase, more importantly, 0050 linked funds can choose not to pay dividends, that is, automatically reinvest the received dividends, saving transaction costs and time costs.
3. “Small 0050” Yuanta Taiwan ESG Sustainability (00850)
Because the top-ranked companies in Taiwan’s stock market value pay more attention to and implement ESG, Yuanta Taiwan ESG Sustainability (00850), whose main holdings are highly similar to 0050, but its share price is only a quarter of that of 0050, is favored by many petty bourgeoisie , 00850 ranked among the top 10 in the stock exchange’s regular quota ETF trading account ranking list, and the number of people is also more than that of Chunghwa Telecom, Fubon Gold and other popular stock deposits.
