Semiconductor Equipment
Highlights Portfolio Strategy Interest rates are one of the most important macro drivers of overall equity returns via valuations. BCA’s view of a selloff in the bond market is a key factor underpinning most of our 2020 high-conviction calls. A 50bps to 75bps rise in the 10-year Treasury yield…
Underweight We reiterate our recent downgrade in the S&P semi equipment index to underweight. Our previous mid-year attempt to fight this rally in chip equipment stocks fell short, but thankfully our prudent risk management metric limited our losses. While still early, there is tentative…
Dear Client, Over the past two weeks, I have been in Asia visiting BCA’s clients. Next week’s Report, on November 20 will be a recap of my observations from the road. This week we are sending you a Special Report on global semiconductor stock performance published by our Emerging Markets…
Highlights Since early this year, global semiconductor stock prices have been front-running a demand recovery that has not yet begun. There is strong industry optimism surrounding a potential demand boost for semiconductors from the rollout of 5G networks and phones in 2020. Yet we expect…
Sell Semi Equipment Exuberance…
Sell The Semi Equipment Exuberance (Part 1…
Sell The Semi Equipment Exuberance (Part 2…
Highlights Portfolio Strategy Lack of profit growth, deficient industry demand, perky valuations and extremely overbought conditions all suggest that the time is ripe for an underweight stance in the S&P semi equipment index. The chip down cycle is far from over, leading global semi sales…
Housekeeping…
Fade Semi Equipment Strength…