Investors expecting the recent recessionary gloom to lessen as the year progresses could look to the technology sector to make the most of any market buoyancy, experts told CNBC. One analyst went as far to say that the sector could even lead a widespread recovery.
Tech Could Lead Recovery
The technology sector looks very positive in the second half of 2008 and could very well lead the global economy out of the current recession, Rob Enderle, analyst at Enderle Group, told CNBC.
Expect Economic Recovery? Buy IT
“We’re long the IT sector and one of the reasons we’re long the IT sector is we regard it as a cheap call option on global economic recovery,” Robert Parker, vice chairman from Credit Suisse Asset Management, told CNBC.
Tech Stocks Relatively Cheap
“If you think the market is going to go up, then chances are tech is going to go up quite nicely as well,” Richard Windsor, global technology specialist from Nomura, told CNBC.
“Technology is relatively cheap right now … so if you look on the fundamentals it’s quite easy to justify having a good position there,” Windsor added.
Asia Will Outperform Developed Markets
Sean Darby, head of regional strategy at Nomura International, believes that the asset markets and the share prices in Asia would do a lot better those in the developed markets. He shares his chief investment themes with CNBC.
Cautious in Stocks, Overweight Gold, Commods
"There's still some significant risks on the economic front," Greg Smith, MD of Fat Prophets said. "We are encouraged from a medium-term perspective." He is overweight gold and commodities.
Beware Shorting Stocks
Investors should be wary of shorting stocks because there are more buyers then sellers at the moment, Minho Roth from FiveT Capital told CNBC. Anko Beldsnijder from MainFirst Bank joined the discussion.
Chinese Infrastructure, Materials Sectors Are Hot
"The market in China has been doing well," Michael Chiu from ING Investment Management said. Although the export sector has been hurt, the infrastructure sector in China is profiting from the country's stimulus packages, Chiu added.
Short Rally for S&P on its Way: Charts
"The past four weeks the index has been struggling upwards and each instance when it breaks to a new high and immediately falls back is an indication of struggle," Bill McLaren, independent trader, said when analyzing the S&P 500 index's chart. He sees the index enjoying a short rally over the next 1-4 days.