New Technology: Is the tech sector about to bubble?
Posted May 20, 2008
“Could the next asset class to take off once again be technology stocks? Keep in mind that tech products are incredibly portable and scalable. What’s more, they are the least vulnerable to inflated commodity costs.” — Adam Lass
by Adam Lass
Baltimore — (TFN): Ever since the great tech bubble burst in 2000, everyone has wondered what the “Next Big One” would be. For a while it was real estate. Then it was China. Next, commodities had their stellar run.
Now the first two are on life support, while the third troughs, with no clear signals as to whether it will skyrocket again… or crash and burn.
Could the next asset class to take off once again be technology stocks? Keep in mind that tech products are incredibly portable and scalable.
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What’s more, they are the least vulnerable to inflated commodity costs. Indeed, the most valuable asset at any tech company is its people, and labor is available at a relative discount right now.
So what would be the first sign of a new technology bubble? Read on to learn the answer and view a chart of the Technology Select Sector SPDR ETF (XLK).
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