The Danger of Index Funds Heavily Weighted in Tech

Index investors now own more tech stocks than they may realize, according to a recent article in The Wall Street Journal. The weighting of technology stocks in the S&P 500 index, the article reports, has “climbed to 23.8% as of December 26, from 20.8% at the end of last year, according to S&P Dow Jones Indices,” and is up from 19.7% three years ago. The article says that investors are now faced with the quandary… Read More

Tech Sector Standouts — Without the ‘A-Word’

In his latest article for Canada’s Globe and Mail, Validea CEO John Reese looks at some top picks in the tech sector — with one very notable and intentional omission. “Today I will attempt a feat that few in the investment world have dared in recent years,” Reese writes. “I will try to write a column about technology stocks without using the A-word – that is, without analyzing a certain headline-grabbing, California-based ‘iGiant’ that rules… Read More

Oberweis Sees Strong Tech Stock Wave

Newsletter guru Jim Oberweis says he’s finding a lot of attractive tech stocks in the market right now. Oberweis tells Forbes that tech stocks — which he says were selling at “absurdly low” valuations in 2008 — have appreciated over the past few years, but only in amounts that are in line with earnings gains. He thinks many should benefit from pent-up demand for capital upgrades among corporations, and he also thinks tech firms are… Read More

Muhlenkamp Likes Big Tech Plays, Auto-Related Stocks

Top value investor Ron Muhlenkamp is finding value in large-cap technology stocks, as well as some picks in the automobile industry. “European banks and insurance companies were big sellers of big-cap technology in 2010 when the extensive problems in Europe were being revealed,” Muhlenkamp tells TheStreet.com. “Pressure has kept stocks cheaper than they otherwise would have been. When we look for values in the current marketplace, we are finding them in big-cap tech, particularly IBM,… Read More

Biggs Sees Tech Sector Leading Next Push Upward

Hedge fund guru Barton Biggs says the global economic recovery is a strong one, and that the next big move in the U.S. market will be a tech-stock-led 15% to 20% upward push. Biggs tells Bloomberg that drug and REIT stocks are also attractive, and says it’s very reassuring that there are so many bears out there. Biggs also gives his take on the European debt crisis, saying that the currency devaluation there could be… Read More