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Bet on Tech This Summer, Strategist Says


Nostalgic for 2000? Arnie Berman, chief technology strategist at Cowen, says it's a mistake to pine away for the the tech sector's glory days. He told "Squawk on the Street" viewers why they should forget the bygone "nutty time" -- and how they should play tech in the near future.

Technology Troubles

CNBC's Erin Burnett noted that if the Nasdaq rose 7% annually, "it would be 2017" before it returned to the lofty all-time peak of March 10, 2000. But Berman said that investors should focus on the idea that, "though we're 50% away" from that record level, "we only spent 22 months in history where the Nasdaq was higher than it is today."

Berman said that using the proverbial dot-com boom as "the milestone" has some anecdotal "literary value" -- but, he asked rhetorically, "How many people actually made all their investments in February [of 2000] and sold them in a month?"

The strategist said investors can "begin to bet on tech" for the second half of the year -- but added, "you're better off placing those bets" in late summer.  Berman believes that the most likely catalyst to tech sector growth will be service-provider spending, particularly in wireless. One development to watch for: the transition to digital TV in February 2009, which will put lots of analog broadcast spectrum up for auction.

Share Price Losers and Winners Since Since March 10, 2000

Sun Microsystems
Cisco Systems
Research in Motion

down 89%

down 68%

down 63%

down 40%

down 63%

up 259%

up 144%