PSI - Semiconductors Illuminate Market Cycle And Investor Psychology
As risk markets have recovered some of their dramatic third-quarter sell-off this month, shares of semiconductor makers have bounced along for the ride, even as semiconductor exports out of South Korea have fallen 28.8% on a year-over-year basis.
Because semiconductors are used in a wide range of manufactured goods globally, demand for them (grey line beside) is seen as a bellwether for world trade (green line beside since 2007).
The PHLX Semiconductor Sector Index (SOX) is a modified market capitalization-weighted index of share prices for the top 30 companies primarily involved in the design, distribution,