Tech Trauma Should Ease in 2010 As Demand Climbs
Tech trauma is a modern investor ailment.
While the patient is aware that technology stocks are symbolic of the near- and long-term promise of the economy, their erratic movement can spike blood pressure beyond normal limits.
Not even last year's healthy tech rebound can completely erase nightmares of the hyperventilation-inducing year that preceded it.
The prescription for 2010 therefore requires tech stocks so compatible with needs of a recovering business world that the patient can once again sleep comfortably.
"Technology growth themes in 2010 will be the rise of the Internet and its infrastructure, as well as tremendous growth of wireless and smart phones," predicted
Largest position in Lippert's portfolio for some time has been
Growth is ahead, but how much is the big question. It will pay for investors to stick with technologies most in demand.
"We think 2010 will have three to five percent growth in information technology spending, compared to the normal IT spending of about 11 percent per year since 1960," said
That's why he likes shares of
Companies benefitting from pent-up demand can also provide a restful year.
"Some technology demand has gone unsatisfied, specifically memory chips," observed
"I'm bullish overall on tech because I think the sector is going to have a good year," added Kay, who expects the economic recovery will show increases in hiring in the second half of 2010. "The thing I have a hard time predicting is whether that's already discounted in the stock prices or not."
Don't overlook the familiar tech names that may have interesting new story lines.
For example, Kay likes
"The next-generation data centers are actually cost-saving projects and that is why we like the stock of
Lippert's Baron iOpportunity Fund (BIOPX), a "no-load" (no sales charge) fund that requires a
"Although it is a smaller holding for us,
Apple will likely be selling more than 100 million smart phones worldwide by 2013 and have a 20 percent share of that lucrative market, Lippert expects, which is why the firm is a significant holding in his portfolio.
Finally, wireless tower companies will be direct beneficiaries of the growth in smart phones and the Internet, with
- Too Many Americans In Dark on Basic Financial Concepts
- Keep Your Resolution to Plan for Retirement
- Lapse of Estate Tax Raises Doubts About Democrats
- Evaluating Estate Tax
- What's in Store for Credit Cards in 2010
- Do-It-Yourself Pensions and Workplace Retirement Plans
- How to Hire a Tax Preparer
- Don't Overlook Utility Bill Payment Aid Programs
- Economic Gale Winds Have Made Investing Tough
- Tech Trauma Should Ease in 2010 As Demand Climbs
- New Financing Rules For Condo Buyers
- Seven Things Your Boss Can't (Legally) Do to You
- Jobless Overwhelm Retraining Programs
Investing - Tech Trauma Should Ease in 2010 As Demand Climbs
(c) 2010 Andrew Leckey