Semiconductor Stocks Could Drop 50%, Direxion Bear ETF May Win Big

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โดย Barchart·Read original
Summary · why it matters

Semiconductor stocks could lose half their value from current levels, according to technical analysis by Rob Isbitts, who points to extreme valuations and concentration in the iShares Semiconductor ETF (SOXX). SOXX holds 35 stocks, but 10 of them account for more than 60% of assets, and its median trailing price-earnings ratio is 70 times. Isbitts notes that passive index flows have created a feedback loop pushing chipmakers to historic highs, but momentum indicators now resemble levels that historically precede cyclical bear markets. He suggests the Direxion Daily Semiconductor Bear 3X Shares (SOXS), which aims to deliver three times the inverse daily performance of SOXX, as a way to potentially profit from a downturn, while cautioning that leveraged ETFs carry significant risk of total loss.

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Semiconductors▲ · 1 stocks
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