Sarmad, good to hear from you again.
The "buzz words" I see every week now is "economic growth slowing" or variations on that theme. I think is most natural that growth is slowing to the initial phase of a recovery. That is usually what happens, as a matter of fact, it must happen - it can not be sustained over a long period of time.
In this past year, making comparisons to the previous year, numbers like 40, 50 percent growth, or more, are not unusual. Obviously, that kind of growth cannot be maintained for very long, except for a few situations, and even those must come to an end eventually.
But, the thing we are concerned about is "no growth" or "contraction". Growth in the range of 10 to 15 percent, if sustained year after year, is quite good IMO. The PE's and PEG's of the "semi" stocks are very low now compared to historical norms. Even growth of 10 to 15 percent would drive them even lower and make the stocks more attractive than they are at the present time.
At the moment however, the "market" doesn't care about that - it just sees "doom and gloom" every time an analyst spouts "slowing growth".:)
Don |
