Current Semiconductor Valuations

Market Update: Our View on Semiconductor Valuations

I have attached two charts comparing current semiconductor sector valuations to both the S&P 500 and the valuations seen during the 2000 dot-com bubble. As you can see, current valuations have reached extreme levels.  For this reason, we do not currently hold any semiconductor stocks. I believe a potential sell-off in this sector could create downward pressure on the broader market, which will ultimately allow our portfolio to outperform in this environment.  As a value-focused investor, I believe you will find this reasoning sound. 

Please let me know if you would like to discuss these charts or our current positioning in more detail.

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