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Tips: Buy Tech Whether Economy Recovers or Not

CNBC.com
Thursday, 31 Dec 2009 | 6:17 AM ET

With the economy still in the tentative recovery stage, many investors are divided on whether a double-dip recession is on the cards. The uncertainty makes building a portfolio for 2010 all the harder as many sectors could only do well in certain economic circumstances.

But the technology sector is a safe buy either way, one market expert told CNBC Thursday.

In Favor of Techs for 2010

"The sector as a whole does have a lot of cash on hand so as the economy recovers, if it does recover, it will have a lot that it will be able to take advantage of," Yu-dee Chang, principal & chief advisor at ACE Investment Strategists, told CNBC.

If the economy is in good shape, the sector has the growth potential to out-pace the broader market, Chang said.

"Should the economy not recover as vividly, then the tech sector is a little bit less subjective to the so-called credit issues," he said.

Expect More M&A in Tech Space

Next year will bring more merger and acquisition activity for the tech sector, says Benny Lorenzo, CEO at Kaufmann Brothers. He offers his outlook for the sector in the year ahead.

How to Play the Tech Story in Asia

There is a lot of opportunity for growth in the Chinese telecommunications market, says Benny Lorenzo, CEO at Kaufmann Brothers. He sheds light on the industry there.

Stock Gains Will be Hard Earned: Analyst

Stock gains will be hard earned in years to come, says Yu-dee Chang, principal & chief advisor at ACE Investment Strategists.

Can This Dollar Rally Last?

The dollar rally is unlikely to last into the initial part of 2010, believes Mitul Kotecha, head of global FX strategy at Calyon.

Preventing Future Financial Scandals

The number of Ponzi schemes that came to light in the U.S. in 2009 nearly quadrupled. Asher Rubinstein, partner at Rubinstein & Rubinstein, offers his take on how to prevent future scandals.

Inflation to Return in 2010

Jacob Bourne, director of inflation trading at Capstone Investment Advisors, sees the 'green shoots' of inflation starting to take root in 2010.

Is a Trade War Brewing Between US & China?

The U.S. decision to impose duties on Chinese-made steel pipe is unlikely to escalate into a trade war, says Jerry Lou, China strategist from Morgan Stanley. He assesses the impact of this news.

Contact Europe: Economy

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