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Thursday, October 11, 2018

The stock market rout is caused by the technology sector.

https://sg.news.yahoo.com/huawei-unveils-chips-boost-cloud-computing-shanghai-conference-022643629--finance.html

The Dow fell 831 points last night.  The Asian indices are falling like hell now!

What's the trigger point for the onslaught?

The trigger point is the structural reform in the technology sector in China.  After Huawei announced its AI chips for its servers, the announcement dawned on investors and me that the technological structural reform in China would kick out the US chips in the future because China-made electronics products like laptops, servers, smart devices, etc will be using China chips.  Consequently, the US chips makers will suffer as they will lose the world's largest market.

The stock analysts will have to scale back their technology stock valuations as this is not factored in their analyses.  Many tech stocks will get downgraded soon.

Watch out for the tech stocks now!





1 comment:

Eric Ho said...

https://sg-stock.blogspot.com/2018/10/huawei-will-stop-using-intel-chips.html

Our previous posting on the tech news.