As someone who spent a lot of time as a Financial Planner after the Tech Bubble in the late 90’s, it is not easy to say you have to love Tech stocks. Why? Because, the Tech market of the late 90’s became the poster child of what not to do when investing. It became a cliché for anyone who taught people how to diversify and be a balanced investor.
Regardless though, I hope people are taking another look at this market, with the past behind them and with a much wiser risk management approach leading their decision making. The fact of the matter is, the
NASDAQ market (
QQQQ)
is on its best run since 1998 and up approximately 23% on the year.
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NASDAQ is only down 20% since the Economic Crisis
Up 16% in the last 3 Months
You should love this market right now because the risk/reward is not as bad it is in the other stock market indices like the
Dow and
S&P. There may be some bumps in the road, but for the long term investor this is an area that cannot be overlooked.
Here are 5 reasons why Techs should once again be part of every portfolio:
Most Tech companies have strong balance sheets with no debt and a lot of cash. Wecan’t say that about Financials and many other industries.
Newer technologies have become like utilities, and people are literally afraid of falling behind the technology curve.
Emerging markets like
China and
India love their high tech gadgets just as much as everyone else and these markets are huge and growing fast.
Technology promotes efficiency, and with companies looking to cut costs they do not mind upgrading their technology.
They’re profitable and should continue to be profitable. It’s all about earnings and most of the tech companies are good at making money and knowing what consumers want.
This is not your late 20th century Tech Market, and in fact the NASDAQ is still about 60% off its all time highs from March of 2000. Investing in this market intelligently may prove to be quite lucrative over the coming years.
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