Explore the VIX Index and the Taiwan stock market indices associated with the Electronic sector and Construction sector

• Main Authors: Cheng-Tai Lin, 林正泰
• Other Authors: Chien-Hsing Li
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/3ds3p7

碩士 === 義守大學 === 管理碩博士班 === 102 === In order to gain profits in the stock market, choosing the right stocks and right timing are the two most important key factors, with timing more important than the choice of stocks. However, the investors are most confused regarding the timing in entering the ever-changing stock market. This study employs the VIX index, proposed by the Chicago Board Options Exchange (CBOE), as the sentiment indicator and the timing reference of entering the stock market. Different from the past literature, which looks into the single index in one country, this study analyzes the electronics-industry stock index and the construction-industry stock index as markers of buying and selling stocks. Also, considering the deferred effect of panic and optimistic of VIX and the “gradual-increase yet dramatic-decrease” features of the stock market, this study offers forty-nine investment proposals using either the strategies of VIX higher than 30 or VIX lower than 20, and then re-exceeding 20. This study indicates that investors using the VIX index as the sentiment indicator make higher profits and better performance in the construction-industry stock index in the Taiwan stock market, which can serve as further investment references in the future.