The recent escalation in trade tensions with China should be cause for concern for all investors. For companies with significant revenues derived in China, investors should be even more cautious, especially after President Trump signed an executive order effectively blacklisting Chinese technology companies, namely Huawei, from doing business in the U.S. and with U.S. companies.
Many semiconductor companies dropped on this news as Huawei is a large customer for many of these producers. The iShares PHLX Semiconductor ETF (SOXX) dropped over 1% on the news. Skyworks Solutions (SWKS), which derives more