TAIEX Correlated with US Stocks; Both Almost at Record Highs
TWSE:TAIEX Taiwan Capitalization Weighted Stock Index
This chart is pretty simple. It basically reminds investors that the Taiwanese stock market is highly positively correlated with US equities using the S&P 500 index as the primary proxy of US stocks. We can see that positive correlation with the correlation coefficient below. The Nikkei 225 is as well. However, TAIEX RSI is nearly flashing overbought and all three indexes are nearing their record highs. What could be the primary motivation for the continuation of breaking record highs ten years into the bull market? This is not a question asked often enough. The notion that we have reached the peak of this cycle should be more closely investigated.