[Charts] Chip-Finity and Beyond
Dear Wall Street Daily Reader,
When Friday rolls around in the Trend Trader Daily Nation, you know the drill:
We roll out the charts!
After all, a picture is said to be worth a thousand words — and there’s no easier way to say a lot without saying anything at all than sharing several compelling pictures related to the timeliest investment trends.
This week, I’m dishing on taxes, chips, and the space race. So let’s get to it…
Flat (Tax) Earthers
It’s a fundamental law of economics: money flows to where it’s treated best.
Jack up taxes and a mass exodus occurs. Ask states like California, New York and New Jersey, whose wealthy can’t move to Florida, Tennessee and Texas fast enough.
With that in mind, news this week that G7 finance ministers reached a deal on a flat, minimum corporate tax rate of 15% promises to level the playing field. This could also put an end to tax evasion strategies like making foreign acquisitions to relocate headquarters to more tax-advantaged countries.
To help put the potential of a flat global tax rate into perspective, check out the spread of existing corporate income-tax rates for select countries. (If it happens, the luck of the Irish should spread across the world.)
To Chip-Finity and Beyond
Forget news that Jeff Bezos will be the first public tech billionaire to leave the stratosphere. Semiconductor demand already beat him to it!
Per Bespoke Investment Group, “As far as end demand for semis goes, we’re in record territory, fueled by strong demand for personal electronics and autos as well as the deepening of semis products that are included in a wide range of products.”
Of course, I’ve been banging the bullish semiconductor drum for over a year now, including when the pandemic first hit and a million Chicken Littles swore demand would wane.
Wrong! And more and more data keep coming in to prove it.
Translation: Keep stuffing your portfolio full of chip stocks.
Getting back to space…
Space Balls and Junk
As I’ve shared before, a bona fide space race is on, with all the major tech companies pouring billions into the sector.
But there’s also a nasty offshoot to our extraterrestrial pursuits: a whole lot of space junk.
Translation: Any company that figures out how to clean up outer space promises to mint a fortune… for itself and investors.
So it’s time to be on the lookout for such opportunities. You heard it here first!
Ahead of the tape,
Editor and Founder, Trend Trader Daily