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I recently made a wise investment.
It wasn’t stocks, cryptos, or even options.
It was a Hyundai Elantra.
I know, I know – it’s unheard of for a gas guzzling car, known for its depreciation, to be an investment.
But the point is, when I parted with my Elantra, I received 90% of what I paid for it.
It’s crazy!
I have to thank the global chip shortage for setting me up with this good deal.
You may have heard of the flea shortage …
But you might not realize what’s going on behind the scenes.
The shortage of crisps will not go away
In short, automakers can’t get the chips they need to build new vehicles.
The lack of chips has capped new cars. This has driven up prices, prompting consumers to seek out used vehicles.
Analysts saw the problem end soon …
But now the shortage is expected to extend into next year.
And I think the semiconductor shortage is not going to go away for LONG.
Everything needs semiconductors
Call me a pessimist if you will. But I consider myself to be a realist.
Everything needs crisps.
Smartphones, computers, even your refrigerator. And not to be overlooked …
Fully electrified cars already use a ton of chips.
For example, a Ford Focus has around 300 chips …
But Ford’s electric models have 10 times more.
And since self-driving cars will need even more chips and sensors …
The needs of automakers for chips will skyrocket.
Technology gets smarter every year
Electric vehicles are the future.
Automakers want 50% of their sales to come from them by 2030 …
Demand will have to exceed supply.
The point is, other end markets also need more chips.
Technology is getting smarter every year.
This is why chip inventories have increased by 250% since 2017.
(Source: Bloomberg.)
You can invest in tokens with the IShares Semiconductor ETF (Nasdaq: SOXX).
Or you can join our Strategic fortunes the subscribers. That way, you have access to our favorite tech picks.
After all, semiconductors are just a trend.
But one trend that is really changing the world as we know it is crypto. It turns everything from art to finance to commerce – name it, it’s changing.
This is why it is essential that you sign up for Ian King’s webinar on the future of cryptos.
You can now join the special list of VIP participants by clicking here.
Greetings,
Steve fernandez
Research analyst, Strategic fortunes
Morning movers
Open until noon Eastern Time.
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