Can the tech sector hold up in this market?
Best Answer
475 points
spider348 answered one year ago …
Sure. I am not sure about the '5 years' crystal ball prediction, but as the tide went out in Oct, it took everything with it. Good and bad in all sectors. Granted technology is a more volatile sector than others and that is why it can rebound quickly. Follow the sector leaders like AAPL, GOOG. Also, the booming alternative energy/technology industry is relying heavily on technology.
Read more from spider348Answers
4107 points
MNSL answered one year ago …
Except few Tech companies almost all tech companies will struggle in the next 05 years.
Information technology sector also will hit hard.
Some tech stock valuations are unattractive. There will be less demand for products in the next 3 to 5 years. In addition, deteriorating credit conditions, slower world growth and some other factors will make worse this sector from next year onwards. Similar to Property and financial sector there is a possibility some tech companies will become bankrupt sooner than later.
There will be some support level for this sector in the next 06 months. However, it is better to avoid this sector now.
Few intelligent investors and analysts are skeptical about this sector now. I agree with them.
251 points
MichaelShulman answered one year ago …
It depends on the tech sub-sector, but our ChangeWave Alliance surveys show business and consumer spending on electronics and computers taking a big hit.
Expectations and stock valuations, despite the recent crash of many Nasdaq (NASD) stocks, are still way too high and assume a mild recession that will end in mid-2009 with capital spending leading the way out. If you happen to believe that, I've got a bridge in Brooklyn I want to sell you.
In the meantime, my ChangeWave Shorts subscribers and I aren't letting a shaky tech sector stand in our way of profits--we just closed out some Dell (DELL) puts for a 121% gain in about three weeks.
Remember, with options, there's always money to be made in any market.
