Recently I have notice something very interesting in what all Taiwanese CEOs were talking about in their investors' meetings.
They all agree global economy has slow down like what Chairman Bernanke is saying. But they disagree about what second half's performance would be. Chairman Bernanke thinks second half of this year U.S. economy will rebound and perform very well. Taiwanese CEOs think second half of this year wasn't as optimist as they thought previously.
But one thing very interesting about Taiwan's high tech industry. They mostly reported very good earnings and also improve q/q. But they did not give out the same proportion of stock dividends or cash dividends this year. When they were ask why, Taiwanese CEOs say they want to save money to expand their factories.
Now this is very interesting. They forecast worst economy ahead but they report good earnings. They want to keep expanding their factories. They must be looking very optimist about the future.
Therefore I think Chairman Bernanke tells the truth. I think global investors should continue to invest in Taiwanese corporations like TSM and Foxconn.