Shorting US Stocks After TSMC Arbitrage Trade Leads to Backfire – Bloomberg’s Investigation Exposes Costly Mistakes Made by Investors
Taoyuan City, Taiwan – An attempt by investors to profit from an arbitrage trade involving Taiwan Semiconductor Manufacturing Co. (TSMC) has backfired, resulting in losses after buying Taiwan stocks and shorting US shares. The trade involved purchasing shares in TSMC, a leading chipmaker based in Taiwan, while simultaneously betting against US semiconductor companies. However, the strategy resulted in losses for investors as shares of TSMC fell in response to global chip shortage concerns. The investors’ …