To the Editor:
Along with Taiwan Semiconductor Manufacturing’s $40 billion investment in Arizona, Intel is investing $20 billion in expanding its already large research and manufacturing presence in nearby Chandler (“How Global Conflict Led to a Surprising Plan to Make Apple Chips in a Desert,” Cover Story, Oct. 13).
In addition to swaths of land around Phoenix, a favorable climate, and reliable and favorable utilities, the state offers Arizona State University and the Maricopa Community College system, which are the largest public university and community college system in the U.S. and have developed engineering, technology, and computer science programs that will meet the labor force needs of Intel, TSMC, and others in the semiconductor and related spaces.
Ted Ferris
On Barrons.com
National Security Issue
To the Editor:
Recent events will drive a huge need to increase our military budget (“What Budget Crisis? The U.S. Will Borrow Even More as Global Tensions Grow,” The Economy, Oct. 13). It could be argued that quantitative tightening will be competing with our military industry for funds, as Federal Reserve bond sales compete with Treasury issuance to find buyers. The Fed might find that QT has shifted from an inflation issue to a national security issue, and should halt its sale of Treasuries.
Eric SwergoldMill Valley, Calif.
Hedging With Oil
To the Editor:
Barron’s suggests hedging with oil against Middle East turmoil and provides a number of options (“Want to Bet on Higher Oil Prices? Try These 4 Funds,” The Trader, Oct. 13). Another one that individual investors might, due to light volume, consider is the closed-end fund BlackRock Energy and Resources Trust, at $12.95. It holds 27 securities, including all of the majors: Exxon Mobil (19%), Shell (11%), Total (7%), ConocoPhillips (7%), and BP (7%). It trades at a 13% discount to net asset value and pays a 6.57-cent monthly dividend, which was raised in March from 5.85 cents for a yield of 6.1%.
Harvey Rosen
Brooklyn, N.Y.
Another EV Play
To the Editor:
Notwithstanding the United Auto Workers strike and its deleterious effects, I still like Al Root’s ideas on car electrification (“Where to Invest $100,000 Right Now,” Guide to Wealth, Oct. 13). To his list, I would add Linama. This is a diversified Canadian industrial with strong markets in both agricultural and access equipment, with mobility and propulsion agnostic/electric-vehicle sales. Revenue is up 29% this year, and six-month earnings per share are up 33%. Executive commentary is extremely bullish. It pays a dividend, and the stock trades at roughly eight times trailing 12-month earnings.
Mike Meehan
Bradenton, Fla.
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