KRW Appreciation Threatens to Weaken Semiconductors

Semiconductor stocks may not have reached their peak just yet, according to investing expert Michael Kramer of Mott Capital Management.

Kramer points out that the strong technical correlation between the South Korean won and the U.S. dollar is a concerning trend for semiconductors, particularly as the won continues to appreciate against the dollar.

The VanEck Semiconductor ETF (SMH) could be vulnerable to further headwinds due to this appreciation of the KRW, which has been steadily increasing over time.