Our view is that semiconductor growth rates have compressed to a level such that inventory cycles are not able to drive equityvaluation outperformance.
While many industrial companies could benefit from this potential near-term sales spike, those that are not well-positioned to sustain their gains will quickly fall back from an equityvaluation perspective.
Equity returns before valuation adjustments are a function of earnings growth (which have their root in GDP growth) and dividend yield including stock buybacks.