The tech sector is down about 7 percent this year, so when will things start picking up again? Jordan Posner, managing director and senior portfolio manager at Matrix Asset Advisors, and Mark Demos, portfolio manager at Fifth Third Asset Management, discussed their sector outlooks.
“We’re a bit cautious on technology because of those weaker consumer trends and the negative earnings we see coming out of the semiconductors,” Demos told CNBC.
He said investors will likely stay cautious until they understand the magnitude of where the semiconductor earnings estimate revisions are going to be.
Posner's View:
In the meantime, Posner said tech demand is quite strong, especially on the corporate side.
“You’re seeing a lot of new products being introduced, both in software and hardware, and companies have the ability and the interest in spending," he said.
"There are good returns from corporate spending on technology, plus there’s the seasonal benefit that we get from holiday spending. ...And there’s a year-end budget flush which will take this year, all of which will support demand and we think tech stocks will do well,” Posner said.
Posner favors the following "in particular":
Dell
Cisco
Microsoft
Analog Devices
eBay
Corning
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Scorecard—What They Said:
- Demos' Previous Appearance on CNBC (Aug. 6, 2010)
- Posner's Previous Appearance on CNBC (May 28, 2010)
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More Market Views—Across the Board:
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CNBC Data Pages:
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Disclosures:
No immediate information was available for Demos or Posner.
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