Tech Stocks Power the Rebound
Last week's move by the Fed to calm the markets seems to have done the trick--at least in the short term.
In fact, tech stocks in particular have really been quite strong yesterday. Shares of two recent Quantum Confidential picks even hit new highs.
Those two moves and the broader gains by other tech stocks have been very encouraging, to say the least. Because despite the size and the magnitude of the drops that have taken place in other sectors during the correction, the tech sector actually held up quite well.
Not unscathed, mind you, but all things considered it could have been much worse.
That's important because without a doubt the greatest test of any market thesis is the stress of a nearly crashing market.
Let's just say that it separates the wheat from the chaff.
And through it all the techs have simply outperformed every other sector, including defense.
That made them essentially the last to fall and the first to rise, which in the bigger picture is quite telling.
That's why I think tech's best days are definitely yet to come.
Because, let's face it, all of the big investment stories of the last seven years are now unwinding before our eyes, and it's not a pretty sight.
Commodities, banking, real estate, mortgages, builders--you name it--all down for the count and headed nowhere but lower, no matter what the Fed does.
That leaves the tech sector as one of the best options in these volatile markets.
In fact, I'd say that the markets are running to techs now because of their complete lack of exposure to the mortgage mess.
And why not?
After all, what sector is better positioned to benefit from the wave of global growth than the techs and their strong balance sheets?
The answer: none. We just have to wait for all of this housing dust to settle now, that’s all.
Once that happens, there is only one direction these markets are headed--much higher. The world economy is just simply too strong.
Tech will lead the markets for years to come.
P.S.: To get more information on my latest Quantum Confidential biotech stock recommendation go here: http://www.angelnexus.com/o/web/2406
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