On the 21st, US stock markets faced declines, with all major indices falling. Subsequently, on the 22nd, the Taiwan stock market opened down 115.34 points, closing at 18793.43, slipping below the significant 19000-point level. This has sparked discussions among investors about whether it is a good time to buy the dip. Financial expert Ruan Mu-Hua cautioned that while many are eager to jump in and buy when markets drop, we must question if we are truly at a bottom.

Compared to the stark recovery seen in 2022, this current situation is far more complex. Ruan highlighted three critical factors related to Trump's trade policies that could exacerbate ongoing uncertainties. He emphasizes a need for careful consideration, advising retail investors to think twice.

Looking back to 2022, the Taiwan stock index experienced a decline from January to October. Even after the National Stabilization Fund intervened in July, the market still encountered further lows. It wasn't until October that the market began to recover, leading into a bullish trend in early 2023. The high point in 2022 was 18000, whereas current levels have reached 24000, with a total drop of 6000 points—taking nearly a year to fully correct. Key factors at play included the rapid interest rate hikes by the Federal Reserve to combat inflation, alongside the absence of trade wars affecting valuations back then.

Ruan expressed concerns about the tendency of investors to rush into the market upon any drop. What defines a ‘bottom’ is often complex and requires careful assessment. For instance, evaluating stocks like TSMC involves understanding metrics such as PE, PEG, dividend yield, PS, and EV/EBITDA. These evaluation methods rely on data, which requires a predictable economic direction. With factors such as Trump's MAGA policies, the weakening dollar, and ongoing trade wars, the impacts will deepen and complicate traditional valuation models.

Finally, Ruan stressed that the key indicator of a market bottom is when prices reach sufficiently low levels, leading to a turnaround from bearish to bullish market conditions. Thus, investors should remain adaptable to changing circumstances while finding their own strategies. Strategizing is paramount amidst such volatility.