Given the their off the charts earnings and their long list of extravagant perks, its kind of hard for me to imagine CEO’s as a gloomy lot. But according to The Conference Board Measure of CEO Confidence, the optimism of this elite group continues to slip.
The broad survey of over 100 business leaders release last week fell from 44 to 45 in the third quarter as the decline in CEO confidence continued to creep lower. A reading of 50 points or better reflects a more positive outlook.
But as gloomy as the forecast of those big wigs has been lately, their dismal outlooks have fallen on deaf ears in the tech sector. That’s because to put it simply, the tech sector has absolutely been on fire lately.
As a result, technology stocks across the board continue to rally, proving once again that is always a bull market somewhere.
The Tech Sector Gathers Steam
In fact, since the liquidity inspired correction in mid August the tech heavy NASDAQ has completely outpaced the both the Dow and the S&P in the latest rush to the up side. Since then the Naz has gained 13% beating the Dow by 2% and the S&P by 1% over that period. And while those margins may seem small by comparison, the truth is that there is more there than meets the eye.
That’s because throughout the entire length of the most recent bull market run, the NASDAQ has lagged the other two. While the Dow and the S& P set one record after another, the NASDAQ it seemed was just merely along for the ride.
But over the course of the last two few weeks those roles have reversed completely as the tech heavy index has quickly gone from third to first.
Take a look:
That’s why I insisted only two week ago that it was it definitely time to catch the NASDAQ. After all, given the current drop in the housing and the slight pull back in consumer spending that has so many people–not just CEO’s-worried lately, the big move into technology stocks of late is entirely rational. That’s where the growth is.
One Way to Play It
Take the growth in IPTV (Internet Protocol Television) for instance, because its growth is off the charts.
I wrote about it in January in this story entitled The Triple Play is on its Way. Its part of much larger trend in which practically every piece of content produced will be made digital and moved online.
According to a report released yesterday, the number of subscribers to IPTV services worldwide grew by 179% in the last 12 months. That made for 8 million subscribers according to a new by analyst firm Point Topic. The data also showed the it’s no local phenomenon either.
Europe led the way adding 3 million IPTV subscribers in the same period, making it the strongest market in terms of both growth with a 231% increase, and in total subscriber numbers with nearly 5 million subscriptions as of June.
And, of course, there is always China. The massive country has finally awarded its licenses for IPTV which means that its market will likely grow quickly. In fact, analyst now believe the subscriptions there could be over 7 million by within the next two years.
It’s that type of fast global and organic growth in this and numerous other areas of the sector that has made tech stocks the investments of choice lately. Hardware, software, and services–you name it–this rally is taking them higher.
After all, these companies are beating the Street for a reason.
So while the nation’s CEO’s may be less than optimistic lately, the fact remains that there is still plenty of opportunity to be found in the markets. Of course it helps, if you’re looking in the right places.
So check out the NASDAQ.
It won’t hit its all time highs like the Dow and the S&P did this year, but it does look like it’s headed to 3100 by year’s end-that’s about another 10%.
Now that’s nothing to be gloomy about.
Wishing you happiness, health, and wealth,
Steve Christ, Editor
By the Way: Since July my last seven stock picks have all been on the NASDAQ. My subscribers are 6-1 over that period earning gains of 7%, 47%, 26%, 16%, 37%, and 50%. Not bad for 12 weeks. The loser? Well it’s only down .05%. I bought it three days ago. To see about joining them click here.
