2024-03-28 16:55:13 ET
Summary
- iShares Semiconductor ETF may be showing some signs of a bubble.
- There are signs of very high prices relative to traditional measures, an influx of new investors/funds, and widespread bullish sentiment.
- I am bullish on the semiconductor industry for its compelling growth curve. However, I think these signs call for caution.
Thesis
The iShares Semiconductor ETF ( SOXX ) has had a superb run in the past 1~2 years. The chart below shows that over the past year, SOXX has delivered a price return far higher than that of the Nasdaq Index represented by Invesco QQQ Trust ETF (QQQ) and also the S&P 500 index represented by SPDR S&P 500 ETF Trust (SPY), which have enjoyed some of their own best years. More specifically, SOXX went up 59.43% in the past year, compared to QQQ's 43.89% and SPY's 32.04%....
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For further details see:
SOXX Begins To Exhibit Some Bubble Signs