Investors try to catch ‘falling knife’ with bets on risky funds during chip rout
- Posted on August 23, 2026
- By Financial Times
- 2 Views
- 1 min read
During the recent semiconductor sector downturn, risk-taking investors have shown increased appetite for leveraged single-stock exchange-traded funds, channeling billions in fresh capital despite significant portfolio losses. This contrarian investment strategy reflects a 'catching the falling knife' approach, where traders bet on mean reversion and recovery opportunities in depressed tech equities. The phenomenon highlights the tension between volatility-driven losses and institutional confidence in sector fundamentals.
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