About a month ago, I wondered if it was time to short semis. Being long semis has been an amazing trade. The Philadelphia Semiconductor Index (SOX) has been a 10 bagger over 10 years.
I have been looking at semis as a short for a long time as a play on weakening Chinese demand, but even though China makes up 50% of end sales in the semiconductor market, Chinese weakness has not been evident in semiconductors, particularly in comparison to industrial commodities. So what has driven the performance of SOX?
