Quick Read – iShares Semiconductor ETF (SOXX), Palantir (PLTR) might fall further come the next S&P pullback, with semis up 66% year-to-date and Palantir trading at a triple-digit P/E ratio that could face a 50% haircut according to Jefferies’ $70 price target. – The tech…
ctor, particularly semiconductors, faces heightened vulnerability to a market pullback as valuations have become stretched on euphoria surrounding AI and semiconductor gains, while bearish investors including Michael Burry position against semis and Palantir through puts. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Palantir wasn’t one of them. Get them here FREE
Market pullbacks can happen when investors least expect it, when there are fewer risks on the radar or complacency about the existing slate of risks on the table. While market corrections can be scary to move through, I think that the most horrific thing about corrections is the potential to impair one’s returns by attempting to steer clear of them. Indeed, rushing to cash and timing the markets can save you a great deal if you get the timing right.
But if you get it wrong, it could prove tough to get back in, and that’s not even considering the inflation hit your cash reserves will take. In any case, staying invested despite any fears of a market pullback, in my opinion, is the way to go. But staying invested means living through those pullbacks.