Once-in-a-Lifetime Investments in Taiwan

Right now, Taiwan is one of my favorite stock markets in Asia. There are some major political changes currently taking effect in Taiwan that have created once-in-a-lifetime investment opportunities for us. I want to share these money-making opportunitieswith you, but first, I think it is important to understand the effect of Taiwan’s transformation on the country’s economic outlook.

Taiwan Transformation

Since 2000, the country has been under the rule of Chen Shui-bian, a member of the Democratic Progressive Party (DPP). Chen was a pro-isolationist ruler and was opposed to having any economic ties with China, even though the relationship would strengthen Taiwan’s economy, and China was supportive of the idea. By the end of his rule, Chen had low approval ratings and had suffered from widespread criticism for Taiwan’s economic malaise — but he still appealed to his political constituency, favoring independence from China.

Because of Chen’s efforts to separate Taiwan and the Mainland over the years, Chen’s anti-China policies made it difficult to keep money flowing between the two countries. Furthermore, high returns in China made the huge capital flow between Taiwan and China a one-way street, with money going to China and not returning to Taiwan.

Economic and Political Changes

For the health of Taiwan’s economy, a change needed to be made. And it came when, in the recent presidential election, the pro-China and pro-economic growth candidate, Ma Ying-jeou, was elected as Taiwan’s president. Within an hour of claiming victory, Ma pledged to strengthen Taiwan’s ties with China with new economic policies that would allow Taiwan to benefit from China’s growth.

Ma said that he would immediately enact his policy to end a five-decade ban on direct flights between Taiwan and Mainland China, and also promised to ease a ban on Taiwanese companies investing more than 40% of their assets in China. In addition, Ma vowed to sign a peace treaty with the Chinese government. Ma also said that he would work to improve the Taiwanese economy and shrink the unemployment rate.

In response to Ma’s victory and promises, investors flocked to the Taiex index, Taiwan’s stock market. The Taiex jumped hundreds of points in the days following the election, and the Taiwanese dollar appreciated at impressive highs against the U.S. dollar.

Tremendous Opportunities for Investors

Going forward, I expect the momentum from Ma’s economic plans to continue to propel the Taiwanese stock market. As Taiwan’s economy benefits from the booming growth in China, I expect to see the Taiex to reach 10,500 points by December. That’s another 20% upside potential.

I think what we are seeing is Taiwan history in the making, and with every huge event like this comes golden opportunity. But the question is: Which stocks offer the best opportunity?

One stockthat will be a major beneficiary of an improving Taiwan economy is a leading manufacturer of liquid crystal displays (LCDs). As the Taiwanese economy and relations with China strengthen, there will be more money to spend on luxury items, like this company’s LCDs. Right now, Asia Edge subscribers are getting in on this company’s fast growth, and I expect an impressive performance moving forward.

Another way that Asia Edgesubscribers are profiting from the Taiwanese transformation is by investing in a leading semiconductor company. This company has business in both Taiwan and China, and with the new economic policies going into effect, its business in China is sure to improve. Not to mention this company has excellent earnings growth and a price-to-earnings ratio of less than 10. Do you want to know the names of these Taiwanese plays and my specific buy limits? Then become a subscriber of Asia Edge today and get in on the profits!