It seems investors are nervous that consumers may be in worse shape than previously believed. And that’s led at least some traders to speculate the best bets are in technology.
Their thesis is pretty straight forward; they think that when the market makes its move it will be tech that leads because technology ultimately makes companies more efficient and improves our lives, overall.
Another way of saying that is, no matter what sets the bulls running, technology is the most likely of all the sectors to go along for the ride.
Pip Coburn of Coburn Ventures can be counted among the tech bulls and suggests 4 ways to play. They follow:
Coburn's Ways To Play
Apple: Coburn is impressed by Apple’s exclusive deals with developers as well as the app store phenomenon.
Ansys: He thinks Ansys is cutting edge with its proprietary technology to simulate real environments with computers.
Adobe: Coburn likes Adobe ahead of a software launch next spring.
Sybase: Coburn calls the firm a “turnaround story that's working” with margins that have room to expand.
Although these 4 companies are quite different they share at least one common thread. At all these firms, “management is addicted to making money,” he says. And that alone makes them long-term buys.