Semiconductor Mania Surges Past Dot-Com Bubble's Peak: 'Abnormal Times,' Top Wall Street Analyst Says
Portfolio Pulse from Piero Cingari
The semiconductor sector's rally has surpassed the dot-com bubble's peak, with the PHLX Semiconductor Sector Index experiencing a 150% increase since October 2022. The iShares Semiconductor ETF (SOXX) relative to the S&P 500 has exceeded March 2000 levels, indicating a significant market surge. Bank of America's Michael Hartnett describes these as 'abnormal times,' noting the market's 25% rise in five months is rare and could signal the onset of a bubble. Hartnett suggests a 'cynical bullishness' strategy until the Federal Reserve's anticipated rate cuts in 2024.
March 08, 2024 | 4:06 pm
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The iShares Semiconductor ETF (SOXX) has outperformed the S&P 500, reaching levels not seen since the dot-com bubble. This significant rally could attract more investor attention but also raises concerns about sustainability.
SOXX's performance exceeding the S&P 500 indicates strong sector momentum, likely attracting more investment. However, the historical context and concerns about overvaluation suggest a cautious approach.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90