Cathay Securities Investment Trust Backs AI Growth, Advises Gradual Buying on Taiwan Stock Pullbacks

Cathay Securities Investment Trust President Chang Yung-chuan said Taiwan stocks had experienced sharp swings because of elevated valuations and near-term selling pressure, but AI demand and the fundamentals supporting technology-sector growth remained solid. The AI supply chain's heavy weighting makes the durability of the boom crucial to the market's outlook and an important consideration for investors adjusting their stock-and-bond allocations.

Chang's latest recommendation is a 60/40 allocation at this stage, with 60% in equities and 40% in bonds. He advised investors to add to Taiwan stock positions gradually on short-term pullbacks instead of making a large one-time investment. He expects the index could reach another record high in the fourth quarter. Available information did not specify when he made the remarks, an index level or a recommended investment amount.