Our view is that semiconductor growth rates have compressed to a level such that inventorycycles are not able to drive equity valuation outperformance.
Borrowing in China and has become more difficult, too, though, so manufacturers may shy away from longer supply chains and the risks they carry, including getting inventory stuck in transit, particularly in industries with short product cycles or high spoilage.
Stock market observers have identified what they believe to be scores of cycles, patterns, correlations and relationships that have spawned a seemingly endless inventory of predictions and trading schemes.