Markets are tapering today, thanks to some profit-taking that's causing a bit of a bump in the overall bull market trend.
As I covered yesterday, one of the next big market shifts in tech is likely to come from the growing conflict between the U.S. and China over semiconductor manufacturing. The Department of Commerce is still gearing up to restrict China's access to cloud computing providers who servers use advanced AI chips, claiming that China can use that access to get around export controls on American technology.
Likewise, China is moving forward with export controls of its own on two rare earth elements that are crucial for chip production, as well as banning domestic firms from doing business with U.S. chipmakers like Micron Technology Inc. (MU). The conflict is likely to get worse before it gets better, which means we could see some further volatility in this space in the near future.
That means we need to be extra careful when investing in anything related to chip manufacturing and focus on islands in the proverbial stream - companies that are too large and important to get knocked around by all this infighting, or companies that are sufficiently diversified that the impact on one leg of their business won't cause too much instability overall.
In my Buy This, Not That segment this week, I walk you through the smartest way to invest in this space right now - how to handle the biggest and smallest players, what levels to keep an eye for, and how to allocate your capital to minimize your risks.
It's all in the video below:
Tomorrow, I'll have a deep dive for you on where the semiconductor "tech wars" could go and how to get ready for the potential fallout. As always, keep an eye out for that.
The post The Best Semiconductor Stocks to Buy (and Avoid) Right Now appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.