Supply Chain and Investing

A product is only as good as its inputs, and when it comes to investing in cutting-edge technology, the availability and affordability of product inputs can make the difference between an exceptional return on investment and a bankrupt company.  One such example is the case of the semiconductors required for new auto and truck models, as described in this article. 

In an environment with pent-up consumer demand and abundant funding available in the form of stimulus checks and ultra-low interest rates, potential car buyers are eager to purchase, but auto manufacturers are hamstrung by a global shortage of the necessary semiconductors.  Investors can search for both risks and opportunities in supply-chain disruptions like this. Understanding the interconnectivity of products and inputs is a crucial element in supply-chain investing.

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- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management