![]() This is why investors typically buy semiconductor stocks at the beginning of a bull cycle and sell it when they see a recession in horizon. Similarly, booming of this industry always coincided with booming of the overall economy. ![]() When this industry started showing signs of weakness it typically pointed out to a weakness in the overall economy. Typically, due to its highly cyclical nature the semiconductor industry has been seen as one of the barometers of the economy. It also includes some big semiconductor players based outside of the US such as TSM (Taiwan Semiconductor) or ASML but they don't get a lot of weight in the index despite their size. This ETF includes 35 stocks within the semiconductor industry mostly based in the US. In this article I will talk about iShares Semiconductor ETF ( NASDAQ: SOXX). I always found it interesting because this industry includes some of the best performers as well as some of the worst performers in the stock market. The semiconductor industry is an interesting industry because on one side it's the lifeblood of all the technological developments we are witnessing but on the other side it is a highly cyclical industry. ![]()
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