Equity View: Unwind Semiconductor Short Trade
- By John Tierney
- 2 min read
Summary
- We are unwinding our long S&P 500/short semiconductors trade.
- Since we recommended it a year ago, the SPX has outperformed by 26%.
- We think the inventory problems that have hindered semiconductors will clear in coming months.
- Meanwhile, many tech companies focused on corporate technology needs are thriving as companies upgrade systems to capitalise on cloud computing and data analytics software.
Market Implications
- We may be slightly early, but we prefer to look for opportunities to go long semiconductors.
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