Back on June 6, I recommended Winning Investor Daily readers buy shares of the iShares PHLX Semiconductor exchange-traded fund (Nasdaq: SOXX).
The exchange-traded fund (ETF) holds major companies within the semiconductor industry.
SOXX was a great buy at the time because fear reigned over investors. Talk of a trade war and the U.S. blacklisting Chinese tech giant Huawei caused the semiconductor index to drop about 18% in just a few months.
In July, however, the semiconductor index rose 17%. If you followed my advice, congratulations on your gains.
But now that investors’ sentiment on semiconductors is changing, it’s time for us to be cautious.
Let me show you why it’s time to be cautious when investing in semiconductors.
In this video, I discuss:
- Warren Buffett’s simple investing advice.
- The semiconductor industry’s performance over the past two to three months.
- Why it’s important to pay attention to investors’ sentiment in the stock market.
Now, don’t be fearful when the stock market goes from euphoria to gloom. You should smile from ear to ear, because that’s when you know it’s time to make money.
And vice versa, when the stock market goes from gloom to euphoria, don’t join in the buying frenzy. Stay cautious so you aren’t forced to sell your shares during the doom and gloom of it all.
In my Alpha Investor Report newsletter, I am on the lookout for companies that are leaders in their industries, have great management and are financially sound.
I identified a semiconductor company that meets all my requirements. And the company is selling dirt cheap.
I want to help you make big money in the stock market. Let me do the heavy lifting so you can enjoy the rewards of being greedy when others are fearful and fearful when others are greedy.
Editor, Alpha Investor Report
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