world-wide IT raw materials shortage
Most of IT manufacturers, like chip manufacturers and connectors manufacturers rely on raw material sources.
For many reasons there have been a raw materials shortage and above mentioned manufacturers cannot produce own products.
All electronics manufacturers are right now struggling to find parts of own products. Many of them are trying to find second sources or replace some parts with others in order to being able to keep producing. But shortage of parts is becoming bigger and bigger.
Many parts retailers are accepting back orders but they are not sure when they will be able to fullfil them.
Prices are arising and electronics manufacturers very soon must increase their prices too to keep having margins.
Most of the Electronics parts manufacturers, like connectors, chips and so on, say 35/40 weeks lead time, but it's likely to be longer.
This could be the beginning of an world-wide scale economic crisis that will see the raw materials sources the only survival at the end.
I expect huge increase in prices and a lot of small and medium industries to bankrupt. Many people will loose their jobs and all the economies will have a deep crisis.
When will be the right time to purchase Stocks?
Probably the shortage will not effect much the Stock Market for a few weeks, actually I expect a little rise for the end of the winter. I am not sure when things could collapse (who could be sure?), maybe 20, 25, or 30 weeks from now... but when the shortage consequences will come out, it will be a huge hit and all will collapse.
Therefore be ready to sell soon and then keep away from the market unless you have chances to go short.
For sure there will be some speculations here and there, and some ones (of us, small fishes) will be lucky enough to make some gains, but again, be carefull and always use Stop Loss.
Author Notes: due to personal and family issues I have not been operating last months. I sold something but I kept most of my stocks... My account is down an average of 14% and, because I have no time to dedicate, I will hold and hope to sell all in the next will rise, probably with little or no gain. Once my troubles are sorted, I will be back.