I recently made a shrewd investment.
It wasn’t stocks, cryptos or even options.
It was a Hyundai Elantra.
I know, I know — it’s unheard of for a gas-guzzling car, notorious for depreciating in value, to be an investment.
But the fact is, when I parted ways with my Elantra, I received 90% of what I paid for it off the lot.
That’s crazy!
I have the global chip shortage to thank for setting me up with this sweet deal.
You may have heard about the chip shortage…
But you may not realize what’s happening behind the scenes.
In short, automakers can’t get the chips they need to build new vehicles.
The lack of chips has capped new cars. That sent prices higher, prompting consumers to look for used vehicles.
Analysts saw the problem ending soon…
But now short supply is expected to stretch into next year.
And I think the semiconductor shortage isn’t going away for a LONG time.
Call me a pessimist if you want. But I think of myself as a realist.
Everything needs chips.
Smartphones, computers, even your fridge. And not to be overlooked…
Fully electrified cars already use a ton of chips.
For example, a Ford Focus has about 300 chips…
But Ford’s electric models have 10X more.
And since self-driving cars will need even more chips and sensors…
Automakers’ need for chips is going to skyrocket.
Electric vehicles are the future.
Automakers want 50% of their sales to come from them by 2030…
Demand will have to outpace supply.
The thing is, other end-markets are need more chips too.
Tech gets smarter every year.
That’s why chip stocks are up 250% since 2017.
(Source: Bloomberg.)
You can invest in chips with the iShares Semiconductor ETF (Nasdaq: SOXX).
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