Tech Stocks Driving The Market
Who would have ever thought that after the tech bubble burst in the late 90’s, tech stocks would reclaim their position as the kings of Wall Street in such a relatively short time frame. Like a phoeonix rising from the ashes, tech stocks continue to climb higher and higher.
Tech’s rise has slowed somewhat recently, based on the news that Cisco Systems has seen orders fall from banks due to the ongoing trouble in the financial sector. However most experts remain bullish on the sector and expect stock prices will continue to rise into 2008.
In the past, the manufacturing sector was the power house of our economy but those days are long gone. There is no question that tech is now the main strength of our economy. Growth in the Internet has seen companies like Yahoo! and Google become the darlings of Wall Street. Even it’s role in our everyday lives continues to grow, if you’re like me, you know you want some nice high tech gadgets this holiday season.
While our role as an economic superpower seems more in danger with every passing day, world wide demand of our tech products will only continue to grow as more and more third world countries become industrialized. While we still see intense competition from Japan and other Asian countries, our tech industry has more than met the challenge.
Arguments can be made that it’s only because of the success of the tech industry that has kept the U.S. economy from a full blown recession. Many analysts agree that in the event we do enter a recession, tech will fare better than most sectors of the economy.
With the implosion in the housing market and it’s subsequent effect on the financial sector, tech remains the ray of hope that could lead us through the dark times.
