Some investors, though, are concerned that the billions of dollars being pumped into internet start-ups by venture capital groups, hedge funds and private equity won’t be utilized efficiently, and the money may not be put to work responsibly.
If you are one of those skeptics that believes we are in the midst of tech bubble round two, you might want to track the tech sector’s long-term trend line (200-day moving average). Simply put, if a position is above its individual trend line we consider it safe to be invested. But once it crosses below that line, it is our signal to sell or stay out. [ETF Trend Following Plan.]
These technology-related ETFs are not filled with start-ups, they hold companies that have been around and could participate in any growth or bubble that might be ahead. Watch the trends.
For more information on the tech sector, visit our technology category.
Max Chen contributed to this article.