Inflation and The Refreshed Semiconductor Market

0 | By Michael A. Robinson

First Read with Strategic Tech Investor

What’s Happening This Week

Last week we got a lot of news. We saw Inflation rise 7% over the past year, the highest since 1982, a million cases a day of Covid, and a very impressive earnings report from Taiwan Semiconductor that shows again why we are focusing on high-quality stocks. We’ve talked about the semiconductor industry a lot recently and given how the business is starting to shift from a secular market to a cyclical one, semis could be in favor for a while. We’re watching Seagate Technology Holdings Plc (STX) and ASML Holding N.V. (ASML) earnings this week to see the follow-through. If they report strong earnings, it could be a good sign for the rest of the industry.

Strategic Updates

Solar Markets

Solar stocks have been a tough place to be recently, maybe pulling back over 50%, but that could change with the amount of capacity going online. Per the latest report by the U.S. Energy Information Administration (EIA), roughly half of the additional 2022 electric capacity in the US could be solar. Click here to read about one of our favorite solar plays.

Market Volatility

The markets, especially tech stocks, have been very volatile and a big part of that is because interest rates are expected to rise several times over the course of 2022. This means that buy and hold may not always be the best strategy. Check out Shah Gilani’s thoughts on trading with the crowd.

What We Are Watching

The Metaverse continues to impress.

It’s no secret that real estate markets have skyrocketed over the last two years, but that’s not the only place it’s happening. An NFT collector recently spent $450,000 for a plot of land to become Snoop Dogg’s virtual neighbor. While this investment may be risky it just shows people’s appetite to invest in the metaverse. That is why we put together a special report on our favorite plays in the space.

Cheers and good investing,

The Strategic Technology Investor Team

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