Time to Pick-up Semiconductor Counters

My previous posts indicate a positive picture for the Semicon sector.
Semiconductor Sustainable Recovery Likely
Semiconductor Recovery Part 2
Semiconductor Recovery?
Semiconductor Industry Recovering



Is it time to start picking up stocks?



The main indicator is the Philadelphia Semi Index, here indications are that we might be reaching the bottom.





The main ETF for the sector is SMH, similar signals here.


For more about SMH, please refer to my earlier blog entitled Semiconductors getting hot?




ETF buyers, please be aware that semiconductor sector is highly volatile and not recommended as a long term value investment.

The annual CAGR going forward is 3-4%, a far cry from the 15%-17% that we use to see in the earlier years.

However, there are some bright sparks e.g. LED space. CREE for example reported a 225% y-on-Y growth earlier this week.