I don’t see any kind of major innovation within the tech industry anytime soon. Given this information, I don’t foresee that major techs, such as Google, HP, IBM, etc. will grow any further. I would not advise investing heavily into tech stocks anytime soon.
Short term you can make money by buying, selling, shorting, etc. ANY stock as long as your guess is right.
Long term, any given public company stock worth zero. It’s just a way to subsidize the industry.
That’s why indexes were invented: to create illusion that markets grow over the long term.
Year, prices will grow with inflation, but not for YOUR shares.
It’s getting harder to pick tech stocks, which have traditionally been ‘growth’ stocks: there isn’t very much growth out there to be found. For instance, HP, IBM and Qualcomm are probably done growing.
I wouldn’t recommend going on a quest to invest in tech stocks; the money to be made there has already been made. They are also extremely one-product cyclical. For instance, if the next iPod is a dud, Apple is in trouble.
Also, be careful about the faux-tech stocks, e.g. Google, which is really an advertising company. They have not been able to charge anything for their technology (kind of makes me wonder). An advertising slowdown will expose them.
It’s probably best to consider them against all other stocks based on valuation rather than sector picks.
It absolutely amazes me to see comment after comment about how there is “no more growth” available for tech stocks. Like all of a sudden Google will postpone its plans to take over humanity because Juan from Birmingham insists that Information Technology is the new Disco. Apparently, Mr. La Monica is spiking his landing pages with heroin again.
Let me guess … GREEN GREEN GREEN! Right? Forgetting for a second the STILL overvalued prices out there (despite the bear market) on roll-the-dice “green” investments … let me ask two questions:
1. What happens when Val Kilmer and that one chick from Melrose Place actually *do* invent “Cold Fusion”? A singular source of clean, renewable … and FREE … energy? (Imagine owning 3 million shares of the windmill manufacturer that came in a distant second. Oops) And say good by to fair competition.
2. What happens when an entire industry forms out of thin air, with hundreds of startups and hundreds of thousands of employees and hundreds of thousands of new computers, networks, office equipment, software suites, etc. Not to mention an entirely new set of technological challenges that an alternative energy market vertical presents? I’ll save you the suspense … Cha-ching.
It’s foolish to write off technology (like you people did back in ‘02) when not only is there STILL growth potential in their existing sectors but also an entirely new industry (albeit cartoonishly trendy and smelling like patchouli) that is already poised to take over the 21st century.
Here’s a newsflash … we need technology. And I highly doubt we’ll need less of it 10 years from now.
Buy yourself some bargain blue-chips while you still can. You’ll thank me for it in 3-5 years.