In the context of today's comment on the hacking of Supermicro, should we not be looking to invest in Purefunds ISE Cyber Security ETF now that it has pulled back to the moving average?
Thank you for this question and it was something I was thinking about yesterday when I was writing about the implication of the Chinese hardware hack.
Each of us needs as much protection from malicious intrusion as we can get. That’s why I have a subscription to Malwarebytes for every computer in the house and only use two for online payments. The rest are for working, playing or watching shows on.
The biggest problem for the investment case for cybersecurity is it is still cheaper for a company to endure an intrusion and loss of our data than to pay to protect against it. The harsh reality is that if the security of hardware cannot be relied upon then whatever software you choose to run on top of it is going to be useless. That is why the hacking of the hardware supply chain represents such a gamechanger.
The Cyber Security ETF is currently testing both the lower side of its range and the region of the trend mean, having failed to sustain its breakout in August. It needs to bounce soon to confirm support in this area.