Taiwan Fund Monthly Insights - July, 2024

During the month of July 2024, the Taiwan market retreated after hitting a record high on July 11th. The rotation out of technology stocks and into other market segments began after inflation fears were tempered, which convinced investors that the U.S. Federal Reserve would lower interest rates at its September meeting. This market sentiment bolstered smaller and more cyclically oriented companies. We continue to expect that US economic growth will slowly revert to its mean and that Taiwan corporate earnings momentum to last through 2025.