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Here’s how you can profit from the cyclical nature of the semiconductor industry
By Value Invest Asia  •  July 2, 2019

This report is first written on FSMOne.comyou can read the original article here.

A good understanding of the semiconductor cycle can help investors make better and more profitable investment decisions. Semiconductor cycles are driven by fluctuating sales growth numbers, which are in turn caused by distortions in supply and demand. While industry down-cycles affect share prices in the short-term, they are never long-lasting. Overtime, share prices typically recover along with sales. Investors who do not want to miss this opportunity can start investing in the semiconductor industry through the recommended Vaneck Vectors Semiconductor ETF (NYSE.SMH).

Investing in the semiconductor industry is not for the faint-hearted. At times of severe market stress or down-cycles, semiconductor companies can lose as much as half of their market value in just a matter of months. Those who lack a good understanding of this industry may panic, or worse, make poor investment decisions that could lead

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By Value Invest Asia
Value Invest Asia started as a simple idea. While we are still studying for the Chartered Financial Analyst Program, three of us met at a CFA event. We were just starting out in our career but we found out even then, that not many people in the financial world are true believers of value investing ...
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