George Moore, co-founder of Intel and Fairchild Semiconductor, published a paper in 1965 (and updated his forecast a decade later) observing the fact that the number of transistors on an integrated circuit would double approximately every two years. His forecast remarkably held true until 2012 but the pace of exponential growth has slowed in recent years. Nonetheless, Moore was prescient in his observations and benefitted handsomely from his 'Law'.
Today, the semiconductor industry remains on the cutting edge of innovation in the technology sector. Yet, the industry is also highly cyclical as semiconductor companies face huge swings in demand for their products in line with peaks and troughs in the broader economic cycle. After a sharp -26% correction 2015, the SOX Index has surged back to life, adding +165% in just the last two years.
The SOX Index peaked in March 2018 at 1,465, corrected by -15% and is now attempting a challenge of its recent highs, albeit on weakening relative strength and momentum. If economic conditions are deteriorating, it will show up first in this sector. A break below 1,200 will confirm a broader change in trend.
At Secure Investments, I advise individual clients on their pension and non-pension fund investment portfolios. To learn more about my Active Asset Allocator and Gold Trader investment strategies, please get in touch at email@example.com or 086 821 5911. If you are reading this via LinkedIn, why not visit Secure Investments and subscribe to get exclusive content for free. No spam, ever. Just great stuff.
The information contained herein should not be taken as an offer of investment advice or encourage the purchase or sale of of any particular security or investment. It is provided for information purposes only. Secure Investments and its content providers makes no representation or warranty of any kind with respect to the services described, analysis or information obtained arising from use of the pages on this website. Information provided is obtained from sources deemed to be reliable and is provided solely on a best efforts basis. Secure Investments and its content providers do not guarantee the completeness or accuracy of such information and do not accept any liability for any loss or damage arising out of negligence or otherwise as a result of use or reliance on this information, whether authorised or not. The use of the website is at the user's sole risk. Not all recommendations are necessarily suitable for all investors and investment policy must be tailored to suit the circumstances of the individual. We recommend that readers consult their professional adviser before acting on any advice or recommendation on this website. The value of any investment may fall as well as rise and you may not recover the full amount originally invested. Past performance or simulated performance is no guarantee of future investment returns. The value of your investment may be subject to exchange rate fluctuations which may have a positive or adverse effect on the price or income or the securities.