Semiconductor ETFs that look timely to buy after a sharp sell-off SOXX (tracks Philadelphia Semiconductor index) @ $208 SOXL (SOXX x 3) @ $102

I believe the world is at an early stage of a transformational technology revolution. Semiconductors are central to this revolution so although the industry has a boom and bust quality I believe the secular trend is strongly higher. The last two months have seen a sharp sell-off but ETFs don’t go bust and have a track record of rebounding to new highs. I think this is a good time for bold investors to buy ETFs that track an index of semiconductor shares. Two are listed above. The 3x leveraged version is obviously for very bold investors.

If somebody told you that global economic activity was going to slow dramatically for several months and then pick up to carry on as normal or even beat normal because of the spring-loading effect, what would you do? I don’t think you would want to sell for such an obviously temporary setback and if prices fell sharply you might well want to buy. Well, that’s what I think is happening with Covid-19. In the middle of a strong bull market driven by globalisation and an accelerating technological revolution we have had a massive temporary interruption that came out of nowhere but surely will not last. Common sense suggests that it is a buying opportunity.