The technology sector, along with related exchange traded funds (ETFs), have also been hit hard in this recession. But has it dipped low enough to entice investors back into this sector?
There are proclamations from Intel (INTC) that the PC market has “bottomed out,” according to Aaron Task for Yahoo! Finance.
Many tech stocks, like Intel Corp., have quite attractive valuations notes Scott Bleier, president of CreateCapital. Bleier particullary notes Intel as “the closet thing to a legal monopoly” in America and that tech stocks like this one are “dirt-cheap.”
Tech stocks are seen as an “anti-financial” play. These companies have lots of cash on hand and have relatively large cash flows.
According to Bleier, it has also been historically shown that over the past 40 years, pessimistic sentiments in the technology sector coupled with low valuations usually leads to a good opportunity in tech stocks. But in our strategy we look for the trends to emerge.
- Technology Select Sector SPDR (XLK): up 10.3% year-to-date; INTC is 4.4%
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.