Investors Are Missing the Opportunity in This Vital Industry

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. Investors Are Missing the Opportunity in This Vital Industry By Nomi Prins, Editor, Inside Wall Street with Nomi Prins Earlier this month, I wrote to you about [how the problems with the global supply chain are getting worse]( amid the ongoing Covid-related lockdowns in China. These lockdowns are reportedly impacting about 328 million people in at least 40 cities across the country. Manufacturing centers, financial hubs, and some of the world’s largest container ports have shuttered (or operations are severely inhibited). Entire industries have ground to a halt. This is having a huge knock-on effect on global trade. That’s because China is the world’s largest exporter. It accounts for 15% of global exports. And as [I told you earlier this month]( 18% of the goods the U.S. imports come from China. And for computers and electronics, that number rises to 35%. I promised to go into more specifics on how the situation in China and global supply issues could affect some of our [key investing themes]( Today, I’ll tell you about one key industry that is reeling from these shutdowns. It affects practically every facet of our lives. And its impact will be felt across each of our investment themes – New Energy, Infrastructure, Transformative Technology, Meta-Reality, and New Money. Yet, the market hasn’t caught on to the huge opportunity this presents… And that distortion means it’s a great time for you to position yourself to profit… Recommended Link [The media is right about one thing – we are about to witness a huge economic crisis...]( [image]( We all know the mainstream media will say anything for more viewers and clicks... But folks who are distracted by this kind of propaganda are about to be left behind. [According to renowned economist Nomi Prins, we’re about to see a crisis…]( But not the kind of crisis most people expect. This is unlike anything we’ve ever seen before... [Click here to see Nomi’s newest prediction before it’s too late.]( -- Lockdowns Will Increase Lead Times Even Further Semiconductors, commonly referred to as chips, are used in every industry – from tech to manufacturing, agriculture to travel, entertainment to banking. They are the lifeblood of the modern digital world. So a continuous and reliable supply is vital. Any delay can slow production. Before the pandemic, the time between ordering a chip and its delivery was about 11-12 weeks. But that jumped sharply as the effects of extensive global Covid lockdowns took hold. In July 2021, the lead time for semiconductors hit a record high of 20.2 weeks. And by March 2022, it had reached 26.6 weeks, as you can see in this chart. [Chart] Now, the recent lockdowns in China are kicking it into higher gear. China accounts for 9% of the market for global chip sales and about 40% of the world’s outsourced semiconductor assembly and testing. And according to the Semiconductor Industry Association, China is on track to capture 17% of global semiconductor sales by 2024. Shanghai, China’s biggest city and a major hub for semiconductor manufacturing, has been in lockdown since March. Up to 40 other cities are in full or partial lockdown. As a result, semiconductor production in China dropped 5.1% in March and a further 12.1% in April. Now, Chinese authorities are talking about lifting some restrictions in Shanghai next month. But China is sticking with its zero-Covid policy. So any increase in case numbers could see lockdowns reinstated at any time. This means the lead time for semiconductors will continue to feel the effects of China’s lockdowns in the coming months… [Featured: Confession: PhD Economist says “Used to think a crash was coming…”]( The Bottom Line Is Taking a Hit Semiconductors are key components in many of the devices we use every day, including our laptops, tablets, cars, and smartphones. So any shortage or delay in their delivery means manufacturers can’t get their products to market as quickly as before. And this hits their bottom line… Even Apple is feeling the effects. It estimates that the global chip shortage could cost it about $4 billion to $8 billion in sales this quarter. And many carmakers, including GM and Toyota, have had to cut production as a result of the chip shortage. Sales at Toyota, Ford, Honda, Hyundai, and Kia have dropped by double digits amid the chronic chip shortage. Overall, U.S. light-vehicle sales fell 17% to about 1.26 million in April from a year earlier. Recommended Link [Elon Musk, Mark Cuban, Jeff Bezos, The World Economic Forum, 15 Countries… What Do They All Have in Common?]( [image]( BOMBSHELL: Billionaires Ignite ‘Strange Transition’ - Why are Elon Musk, Mark Cuban, Jeff Bezos, The World Economic Forum, and 15 Countries piling into the same STRANGE technology? - Why is it estimated [that one-tenth of the entire world economy will be using this new technology?]( - Why is Warren Buffett (known for hating technology) investing $1 billion into it? Wall Street legend Teeka Tiwari says… [“A year from now, the financial world as we know it will look NOTHING like it does today…”]( Most folks aren’t ready for it, but the world’s biggest trillion-dollar markets – markets the average investor has NEVER had access to before… Are quickly becoming [“UNLOCKED…”]( [Click Here to See What This Means For Your Savings & Investments.]( -- Chip Makers Not Making Hay While the Sun Shines Now usually, a shortage like this amid rising demand would be great news for the companies supplying the scarce resource. And semiconductor manufacturers have taken advantage by increasing prices by up to 25%. In a normal market, you would expect the shares of these companies to shoot higher. But this market is anything but normal… Covid, the lockdowns in China, the war in Ukraine, the global shortages of everything from baby formula to fertilizer, the Fed’s aggressive plans to bring down inflation. Need I go on? All these factors are injecting a huge amount of volatility into global markets. At writing, the S&P 500 is down 18% year-to-date. The Dow is down nearly 14%. And the tech-heavy Nasdaq is down almost 28%. The semiconductor industry is one sector that’s taking a beating as a result. The PHLX Semiconductor Index (SOX) tracks the industry’s leading companies, including Advanced Micro Devices, Nvidia, and NXP Semiconductors. It has plunged nearly 30% so far this year. [Chart] This is mainly due to the broader headwinds for the technology sector. But I think investors are missing the big picture when it comes to semiconductors. And that spells opportunity for us. Here’s why… [Featured: June 1st…7 Billionaires Prepared (Musk, Cuban, More…)]( Semiconductor Demand Will Continue to Grow In 2021, global semiconductor revenue increased by 25% to $614 billion after the rebound from the Covid-19 crisis. According to market research firm IC Insights, semiconductor sales in 2022 will increase by 11% to $680 billion. This would mark the third consecutive year of growth, as you can see in the next chart. [Chart] And global research firm McKinsey estimates that the semiconductor industry will become a trillion-dollar industry by 2030. This makes sense. We’re buying more gadgets today than ever. Whether that’s a smart TV, the latest smartphone, or a new Tesla, these devices will continue to require increasingly more powerful chips. In short, I believe demand for semiconductors will continue to grow, regardless of any short-term jitters. And the supply crunch makes the industry a strong investment target right now… Recommended Link [Here’s how a flat tire could bankrupt you…]( [image]( Why are shelves empty? And why are prices skyrocketing? That’s what crisis investor Dave Forest set out to uncover inside the aisles of this chain store. “In the coming days — we could go from empty shelves… to empty wallets… and most won’t know what hit them.” [Watch his urgent video now.]( -- What This Means for Your Money If you’ve been with us for any amount of time, you’ll know that market distortions almost always spell opportunity. The semiconductor space is a prime example of this. It’s a long-term technology trend that has ended up on a deep-discount rack, thanks to the shutdowns by the Chinese authorities. So how do you position yourself to profit from this? You can consider getting exposure to iShares Semiconductor ETF (SOXX). It tracks the performance of the PHLX Semiconductor Index (SOX) I mentioned above. SOXX is a straightforward investment you can access with a brokerage account. It has about $7.3 billion of assets under management. And it has 30 stock holdings, including leading chipmakers Nvidia (NVDA), Advanced Micro Devices (AMD), and Intel (INTC). SOXX is down 26% year-to-date. That’s broadly in line with the 28% drop for the Nasdaq. Though I do still expect some choppy times ahead for this sector and the overall market, I think we’re currently at an attractive entry point for a longer-term investment in the semiconductor industry. Happy investing, and I’ll be in touch again soon. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Investors Are Missing the Opportunity in This Vital Industry). --------------------------------------------------------------- MAILBAG Readers have thoughts about [where the dollar stands among the world’s currencies]( and the state of America today… Nomi, I’m 67 years old, live in Oregon, and can’t believe what I’m seeing. As I drive through Portland, it’s like a third-world country. Worry about a recession? No, not at all, because it looks like a depression. Government lies and corruption have us in a free fall. The way things look to this ole guy, you better invest in beans and rice while you still can. Gold, silver, and cash are good but not without food. What I see with my eyes is completely different from what the lying media reports! Just my thoughts. And by the way, it’s not just Portland but all of western Oregon. – Paul S. Bottom line: The U.S. dollar is nothing more than the best-looking horse at the glue factory… – Ransom G. Are you seeing in your towns the financial devastation that reader Paul is seeing in Oregon? What are your thoughts on the continued Covid shutdowns? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Investors Are Missing the Opportunity in This Vital Industry). IN CASE YOU MISSED IT… [May 20th: The End of the American Dollar?]( Behind the curtain of the pandemic, America’s elite have secretly launched the biggest attack on your wealth since 1971. Tech expert Jeff Brown warns: “If you have more than $2,500 in savings or stocks, YOU MUST ACT NOW, before it’s too late…” [Go here to find out what you MUST do to secure your wealth.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. [The Gold Investor’s Guide]( [The Trader’s Guide to Technical Analysis]( [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@rogueeconomics.com). © 2022 Rogue Economics. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Rogue Economics. [Privacy Policy]( | [Terms of Use](