The Fed Is Hiking and Chips Are Crashing. History Says Buy Telecom.

Verizon just posted its best third quarter of phone adds in five years and raised guidance for the third quarter running, yet Wall Street is selling the sector into Wednesday's Fed decision. When the Fed was tight and semiconductors were in a bear market, US telecom still trailed the S&P 500, but by far less than usual, and AT&T screens best of the three on free cash flow yield.