Bill Fleckenstein Is Bearish On Semiconductors

Bill Fleckenstein, a President of Fleckenstein Capital, spoke on CNBC's Fast Money about his current view of the market and his plans to start a new hedge fund.

Fleckenstein thinks that the Fed has been successful in pushing S&P 500 to 2,000 points, but it hasn't managed to resurrect the economy. It is better than it was in 2008, but it is not in a good shape, added Fleckenstein. He thinks that the economy won't stay strong in the second half of the year. The biggest problem for the market is that the Fed can't do any more easing and the market is on its own and it is not as strong as it looks on the surface, thinks Fleckenstein.

Expectations are very strong and Fleckenstein doubts that they can be met and he sees market as a very crash prone. He decided to activate his short-side hedge fund, which he closed in 2009, at the beginning of the uptrend. He believes that he has a lot of candidates to short, but his main target is the semiconductor space, especially QUALCOMM, Inc.
(NASDAQ: QCOM), Intel Corporation (NASDAQ: INTC), NXP Semiconductors NV (NASDAQ: NXPI) and Skyworks Solutions Inc (NASDAQ: SWKS).