When we say the word chips, the potato or tortilla variety may first come to mind. But for today’s Insights, we are focusing on a different kind of chip - semiconductors. While these chips are most often associated with higher technology gadgets like our laptop computers and cellphones, they are also critical components in common appliances like ovens and microwaves.  
Thanks to supply chain headaches associated with the coronavirus and uncertainty around inventories and consumer demand, the world is now experiencing a severe chip shortage. This dearth has been particularly painful for carmakers like GM, who idled plants and Ford, who cut production of the most popular vehicle in America, the F-Series truck. As these chips continue to become more integral in our everyday lives, international trade policy, particularly with Asia, will be paramount.  

The information and opinions presented in this communication are subject to change without notice, are provided for background purposes only and do not purport to be full or complete. No representation is made concerning actual future performance of investments, markets or the economy. Information obtained from outside sources is considered reliable but is not verified. Before investing, please carefully consider whether an investment is suitable for you. Past performance is not necessarily a guide to future performance and there can be no assurance that an investment’s objective will be met. Please refer to the offering document for further details of the financial commitments and risks involved in connection with investment. 

Performance information presented is not an indication of future results and index data is provided for market reference purposes only. This is not an offer to buy or sell or the solicitation of an offer to buy or sell any security/instrument or to participate in any particular trading strategy. 

This presentation is the property of Meristem, LLC and is intended solely for the use of the Meristem client, individual, or entity to whom it is addressed. This presentation may not be reproduced in any manner or re-distributed by any means without the express consent of Meristem. Mis-transmission is not intended to waive confidentiality or privilege.