Index Volatility: A Strategy to Assess Small and Medium Stocks

Reported 9 months ago

Author Liu Tingyu reports on June 26, 2024, that since the decline from the peak on June 20, where the Taiwan stock market also dropped nearly 900 points from its high of 23,400, trading volume for the week reached 2.7 trillion, the highest since 2022. Analyzing the follow-up of the Taiwan stock market by Huida, the focus is on small and medium stocks as their stable chip conditions are less influenced by the market environment. With the volatility in international stock markets, the stability of small and medium stock chips becomes a concern for the future. Stock turnover rate is another crucial factor for investment decisions, with higher turnover rates potentially increasing volatility. Despite this, low turnover rates can contribute to price stability amidst market fluctuations. It is advised to consider various factors beyond just stock turnover rates, such as the overall market conditions and fundamental analysis.

Source: YAHOO

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