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Long Tech in December- Right reasons, it seems.

April 20, 2011 Comments off

Remember this blast from late December?

But I think the argument for Tech Stocks Right Now! in massive size is very compelling.

  1. Businesses have put off tech spending for a few years – and this may as well be 50 years for a normal industry.   Tech decays in usefulness quickly.
  2. Tech spending is the first to get cut in a downturn, because you can put it off for a bit.  However, it comes back on line quickly if there is a recovery, because it is cheap.
  3. There are many new business focused software techologies coming on line next year that will be staggeringly useful for businesses.

The business depreciation acceleration is coming at a perfect time for business spending, but it will have an outsized impact on tech spending within the business community.  It will have a particularly strong impact on tech spending this year.  In the past, current spending gooses tech stocks enormously.

Go long, long, long Tech!

Check out this article from Bloomberg:

Intel Corp. (INTC) and International Business Machines Corp. (IBM) issued sales and profit forecasts that reflected demand from companies eager to upgrade computer systems left fallow during the recession.

IBM, the largest computer-services provider, boosted its full-year profit forecast, while Intel, the top chipmaker, forecast second-quarter sales higher than analysts predicted. VMware Inc. (VMW) and Juniper Networks Inc. (JNPR), two other business- technology providers, also met or topped analysts’ projections.

The entire article is essentially a recap of my post from December.

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