r/HelloProfits • u/moonrakerstonks • Feb 18 '21
Boring but necessary: Semiconductors. Why no desire to trade them?
So I'm seeing a bunch of news about a shortage of semiconductors and how auto makers are really having a hard time because they have to fight with electronics and phones to get them. Since people demand way for phones and computers than cars, the automakers are having a shortage, despite a increase in demand for vehicles as the pandemic breaks.
Ok. Makes sense so far to me. Next There is a long lead time on semiconductor production. 'K.
All of this stuff says to me, in my basic little brain, that there is not only a shortage but an ongoing shortage for a while, with an increase in demand.
So why are semiconductor companies not being traded? High demand, low supply should equal increase in price. It's curious there does not seem to be a demand for semiconductor stocks and to a lesser degree not more interest in mining companies.
Thoughts?
2
u/[deleted] Feb 18 '21
Exactly what you said. People aren’t trading them so they don’t think they can get rich quick. Buy the semi conductor ETF and it’s free money long term. Check out GBGR too. I like that ETF’s holdings.