| Long Term Potential |
|
► Investor Survey (help)
Technology ETF Funds Leveraged ETF Funds US Only Technology Bear 3x ETF (TYP) US ETF Funds NASDAQ-100 Technology ETF (QTEC) Non - US ETF Funds Emerging Technology ETF (ETX) |
Research Report
Technology Industry Analysis ► (edit / improve) Description: The technology industry broadly includes companies whose primary function is to create innovative products and processes. Information technology deals with the management and processing of information. Valuation Analysis: Based on WikiWealth's Wall Street analysis, this industry is a Hold with slightly negative potential. The Main Street analysis says a Buy, with SWOT strengths much great than weaknesses and SWOT opportunities equal to threats. Trade Analysis: Global centers of innovation include: the US, India, Japan, Israel, Korea, and Taiwan, while the main technology commodities include aluminum, copper, and silicon. Profit Conclusion: The technology industry tends to be sensitive to economic cycles. Look for undervalued technology investments during economic recessions and sell technology investments during the late stages of a bull markets. The global economy is currently in a recession, therefore, it is the perfect time to purchase discretionary investments, because business significantly increase technology investments that they postponed during the recession.
Investment Impacts (help)
USA Country Analysis ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. Currency Analysis: the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies (see investment flows analysis). Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade Analysis: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. Commodity Analysis: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the housing crisis may lower growth. Profit Conclusion: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.
India Country Analysis ► (edit / improve) India (INR) has a highly regulated economy; however, recent liberalization has transformed the economy towards a capitalist, market-based system. Currency Analysis: India’s currency is fairly valued with very low investment flow potential combined with very high purchase price parity potential. Investor Survey: India’s economic environment is unfavorable for long term economic growth due to low scores on economic freedom, transparency, economic diversity, and the SWOT analysis. Trade Analysis: Belgium, Pakistan, the UK, Japan, and the US are the top export partners. Commodity Analysis: India produces a significant amount of staples for domestic use and needs to import energy. SWOT Analysis: The leading Indian strength is their supply of natural resources, while the main weakness is a lack of infrastructure. Profit Conclusion: A fairly-valued currency, very low investment flow potential and an unfavorable business environment leads to a negative outlook for Indian investments.
Japan Country Analysis ► (edit / improve) Japan (JPY), the second largest economy in the world, has an industrial, export oriented economy that benefits from its relationship with the USA and proximity to China. Currency Analysis: Japan’s currency (the Yen) is overvalued according to investment flow potential, the purchase price parity analysis, and the interest rate parity analysis. Investor Survey: Japan’s economic environment is moderately favorable for long term economic growth due to high scores on economic freedom and government transparency, but low scores on the SWOT Analysis. Trade Analysis: Indonesia, China, Singapore, the EU, Korea, and the US are Japan’s top export partners, while the leading industry is industrial manufacturing. Commodity Analysis: Japan imports many products because of its lack of arable land and energy resources. SWOT Analysis: The leading Japanese strength is their education system, while the main weakness is a declining birth rate. A major Japanese threat is the continuation of zombie companies. Profit Conclusion: An overvalued currency, low investment flow potential and moderate business environment leads to a negative outlook for Japanese investments.
Israel Country Analysis ► (edit / improve) Israel (ILS) has a fast growing, technology-intensive economy in South West Asia. Currency Analysis: Israel’s currency is overvalued with very low investment flow potential. Investor Survey: Israel’s economic environment is slightly favorable for long term economic growth due to high scores on economic freedom. Trade Analysis: Belgium, Saudi Arabia, Hong Kong, the USA are the top export partners, while the leading industry is technology. Commodity Analysis: Israel’s lack of arable land requirements that it grow agriculture goods in expensive environments and import the rest. SWOT Analysis: The leading Israeli strength is their regional economic dominance, while the main weakness is their lack of arable land. IT leadership has the opportunity to propel growth, while terrorism could lower short-term growth. Profit Conclusion: An overvalued currency, low investment flow potential and moderate business environment leads to a negative outlook for Israeli investments.
Korea Country Analysis ► (edit / improve) Korea (KRW) has a fast growing Asian country with a market-based economy. Currency Analysis: Korea’s currency is undervalued as a result of the purchase price parity analysis. Investor Survey: Korea’s economic environment is moderate, because high scores on economic freedom are offset by low scores on the SWOT analysis. Trade Analysis: Indonesia, China, Singapore, Japan, Hong Kong are the top export partners, while Korea’s emerging industry relates to technology. SWOT Analysis: The leading Korean strength is their shipbuilding expertise, while the main weakness is their bank cross holdings. North Korea is their main threat to long term economic growth. Profit Conclusion: An undervalued currency, high investment flow potential and moderate business environment leads to a slightly positive outlook for Korean investments.
Taiwan Country Analysis ► (edit / improve) Taiwan (TWD) has an export driven, capitalist economy in Asia and is moving from a centralized system to a market system. Currency Analysis: Taiwan’s currency is undervalued with low investment flow potential, and high purchase price potential. Investor Survey: Taiwan’s economic environment is favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade Analysis: Indonesia, China, Singapore, Japan, and the US are the top export partners, while a leading export industry is technology. Commodity Analysis: Taiwan utilizes a significant amount of silicon and tin. SWOT Analysis: The leading weaknesses in Taiwan are their declining birth rate and corruption problems. Profit Conclusion: An undervalued currency, low investment flow potential and favorable business environment leads to a positive outlook for Taiwanese investments.
Commodity Investment Impact
Aluminum Commodity Analysis ► (edit / improve) Aluminum is one of the most widely used metals and global production is second only to iron. Commodity Analysis: Aluminum is rated a Hold. Aluminum demanders and suppliers have potential to increase in value. Investor Survey: Aluminum’s long term growth potential is moderately favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: Aluminum has a vast number of uses, which help it to maintain long term demand. Opportunity to grow: Aluminum is completely recyclable, which will help as consumers become more environmentally active; Threats to growth: Other materials with similar properties like carbon fiber could be a significant threat to aluminum. Profit Conclusion: The commodity analysis hold rating indicates that aluminum should stay about the same over the short term, whereas a moderately favorable investor survey means aluminum may increase in price over the long term.
Copper Commodity Analysis ► (edit / improve) Copper is a widely used decorative and anti-bacterial compound. Copper is also a good conductor of heat and electricity. Commodity Analysis: Copper is rated a Hold. Both copper demanders and suppliers have potential to increase in value. Investor Survey: Copper’s long term growth potential is very favorable due to high scores on difficulty to expand short term supply, sensitivity to price changes and the SWOT analysis. SWOT Analysis: Strength: Copper has a limited supply and a wide array of uses. Opportunity to grow: Copper’s self cleaning properties have the potential to increase growth in the future; Threats to growth: Copper’s diminishing supply could hurt growth as substitutes become more appealing. Profit Conclusion: The commodity analysis hold rating indicates that copper should stay roughly the same over the short term, whereas a very favorable investor survey means copper may increase in price over the long term.
Silicon Commodity Analysis ► (edit / improve) Silicon is an important component of most semiconductor devices, which are mostly used for technology applications. Commodity Analysis: Silicon is rated a Sell, because demanders of silicon have a low potential value. Investor Survey: Silicon’s long term growth potential is moderately unfavorable due to low scores on difficulty to expand supply. SWOT Analysis: Opportunity to grow: silicon’s use in the growing construction and technology industry could help future material growth; Threats to growth: silicon may be harmful to miners. Profit Conclusion: The commodity analysis sell rating indicates that silicon should decrease in price over the short term, whereas a moderately unfavorable investor survey means silicon may decrease in price over the long term.
- These are some of the essential commodities that go into the production of many manufactured technologies.
