We spent much of September with rhetoric of threats to the stock market. Investor sentiment was exceedingly sour on Wall Street. There wasn’t one particular reason for it, but rather many small reasons for the chaos. The headlines singularly were not enough to break this incredible bull market. However, when you have many negative headlines circulating, they can have a collective bearish effect. Smart money did well to continue looking for stocks to buy during this so-called correction.
I use that term loosely because Wall Street defines it to be a drop of 10%. We did not do that, in fact the S&P 500 stayed pretty close to all-time highs. This week we could take those out, if not maybe in the next few to follow. One sector had tangible reasons to suffer. The experts acknowledge that there is a global shortage for semiconductor equipment and components. Therefore, today we look for semiconductor stocks to buy on these dips.
The consequences from such supply disruptions extend beyond the sector. But today we will focus on three leading companies, as they could have better days ahead. The sentiment among investors has repaired itself, but I’m still reading too many bearish opinions. On the one hand, reliable experts are calling for a recession. While at the same time other mavens are warning of runaway inflation.