Friday Investment Talk: Semiconductors, Inflation, Bonds and Biotech

The global semiconductor shortage calls attention to the risks for both business and governments. Calls have been made to support the US industry by bringing manufacturing back to the US. This has drawn attention to the multitude of companies that can benefit from more capital investments.

Inflation is coming. It showed up in this week’s PPI reading. The effect on long term bonds is largely missed by stock investors. Increases in CPI are yet to appear, but when they do markets generally trade sideways for extended periods. In the meantime, companies continue to issue poor quality debt and investor pile on high risk issues.

Biotech holds a special interest in our research. The sector is very diverse – from drugs to medical devices to innovative treatment practices. Technological breakthroughs drive the development. Investors have a wide range of options to gain exposure in the portfolios.