Semiconductor Equipment
Underweight The dramatic decline in semi equipment stocks has not been arrested in the Q3 earnings season, despite relatively positive results. We think the overall negative sentiment around global tech stocks in general and valuation high flyers in particular has been weighing on the…
Underweight In yesterday's Daily Insight, we highlighted our neutral barbell portfolio in tech, staying overweight secular growth defensive tech sub-sectors (namely S&P software and S&P tech hardware, storage & peripherals, both of which are high-conviction overweights) and…
Highlights Portfolio Strategy Stick with a neutral weighting in the tech sector as rising interest rates, higher inflation and a firming greenback offset improving industry operating metrics on the back of the virtuous capex upcycle. Chip and chip equipment stocks will remain under pressure as…
As the SPX and a slew of other indices have vaulted to fresh all-time highs, a deeper dive into profit margins is in order. While the S&P 500's profit margins are benefiting from the one-time fillip of lower corporate taxes in calendar 2018, it is important to remember that this is not…
Highlights The regulatory or "stroke of pen" risk is rising on FAANG stocks - Facebook, Apple, Amazon, Netflix, and Google; The U.S. anti-trust regulatory framework was designed to curb anti-competitive actions but has evolved to focus mostly on consumer welfare and prices; A shift toward the…
Risk management is important in tumultuous times. Our long held strategy of how to navigate choppy waters during a tactical correction has been to book gains in pair trades and thus de-risk the portfolio, and institute trailing stops to the high-flyers in our high-conviction call list. Two…
Semiconductor stocks in general and semi equipment in particular have gone parabolic over the last year, prompting us to add the S&P semi equipment index on our speculative high-conviction underweight list earlier this week. The move looks prescient as the index, as of publishing, has…