Source: Zero Hedge
Is Huawei Behind The Massive Semiconductor Bubble… And Why It’s About To Burst For those still looking for signs that there central banks have created an epic asset bubble of unprecedented proportions, and who refuse to acknowledge that the S&P is now trading at higher multiples than the first tech bubble… … we have just the chart for you: the SOX Philadelphia Semiconductor series. Having successfully blown past the dot com highs, the SOX index has nearly doubled over the the past year, yet what is bizarre is that this move certainly was not on the back of earnings, which are now lower than where they were when the index was over 40% lower! This unprecedented – and growing – stock price bubble has not escaped the attention of the “smart money” either. Indeed, as Bloomberg writes today, even as hedge funds’ exposure to tech shares remains at the highest level in at least a decade, they haven’t added to holdings in software and service providers. Instead, hedge funds are betting big on the chipmakers and hardware firms, according to prime brokerage data compiled by Morgan Stanley.