Contrarian Value Ideas

[gfp927z]

Derf, >> AVGO <<

It's almost back to the 50 MA, so will see if that holds. But the other semis haven't pulled back as much as AVGO has. Looking at ASML, KLAC, and the Semiconductor ETF (SOXX), they are less than halfway back to their 50 MAs. So might be more downside to the pullback, but tough to say. Either way though, I figure longer term this sector should continue to be a winner. Just look at the steadiness and trajectory of AVGO's 10 year chart. The techs have merely gotten ahead of themselves in recent months, so some consolidation is needed and would be healthy.

Fwiw, I figure some of the out of favor sectors and stocks could now play catchup - small and mid caps, and some of the % rate sensitive areas like REITS and utilities could start to recover as the Fed eases this summer. The market will have a nice tailwind from the falling % rates for the next several years. So that leaves geopolitical events and the election as the main landmines lurking out there. But as the old saying goes - 'A bull market climbs a wall of worry'.



---