Wealth Watch: Computer Chips Could Provide Opportunity During Summer Doldrums

Wealth Watch: Computer Chips Could Provide Opportunity During Summer Doldrums

July 29, 2021

From the desk of Vance Howard:

The markets are trading pretty much as we anticipated. The HCM-BuyLine® is positive and is still very strong, so any pullback should be bought. July and August are historically slow months and usually produce nothing but volatility; this seems to be holding true in 2021. We do expect the market to be higher by year-end. 


Like we stated in the past few Wealth Watch updates, AMZN has broken out of a 9-month base, and we expect that equity to move higher in the near-term. We are also bullish on SOXX, which is the ETF that tracks the semiconductor index. Chips have been in short supply and have held back some industries such as auto from being able to manufacture as fast as they would like. This is starting to ease up a bit, and we expect that by year-end it will not be nearly the problem it is now. 


To add to our outlook on chips, Qualcomm (QCOM), the world’s largest smartphone chipmaker, delivered a bullish quarterly forecast helped by the growth of 5G networks and consumer demand for new devices. On Wednesday, the company said earnings will be $2.15 to $2.35 per share for the period ending in September, which is well ahead of the average projection of $2.07. Revenue will be $8.4 billion to $9.2 billion, compared with an estimate of $8.5 billion.

Private sector gross job gains fell by 2.0 million in Q4 2020 to 8.8 million, which was still the second highest level since Q1 2000. Gross job losses slipped by 188,000 to 6.7 million. As a result, there were 2.0 million net job gains at the end of last year, the second most since data started in 1992. It shows that employment dynamics continued to normalize, following the pandemic shutdown and massive job loss in the first half of last year.

All 13 industries posted net job gains, but most were in services. Nearly 2/3 of all net job gains were in professional and business services, transportation and warehousing, and education and health care. 


Vance Howard

Copyright © 2021, All rights reserved.

Our mailing address is:

Howard Capital Management Inc.
1145 Hembree Rd
Roswell, GA 30076

This newsletter is a publication of Howard Capital Management, Inc. It should not be regarded as a complete analysis of the subjects discussed nor should the newsletter be construed as personalized investment advice. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. It should not be viewed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Howard Capital Management, Inc. (“HCM”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from HCM. Please remember to contact your primary investment professional, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising HCM’s investment management services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment management services. HCM is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the HCM’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.

© 2021 Howard Capital Management, Inc. All rights reserved. Intended for receipt only and not for further distribution without the consent of Howard Capital Management, Inc.

 McCarthy Financial Group's Blog: Market Insights & Wealth Watch

Schedule Appointment