For the first time since 2002 tech has surpassed financials to become the largest sector in the S&P 500. How should you bet on tech?
Joe Clark, Financial Enhancement Group Founder & CIO joins the panel for this conversation. Following are a summary of his main points.
Clark currently likes big cap tech. Despite record oil he feels the balance sheets of Corporate America are strong and that the money will be used to upgrade tech equipment.
“That means you want to be in IBM (IBM), Microsoft (MSFT) and Hewlett-Packard (HPQ) which collectively could generate returns of 20% in the next 52 weeks,” he counsels.
“Big blue is bright,” says Clark. “In April of ’06 they floated bonds to buy back their own stock and now they are laughing all the way to the bank.” On top of that Clark thinks IBM should benefit as companies upgrade their software. Microsoft should benefit as well.