|
Stock Market Turning Back to Tech |
Mark Meyerowitz,Owner,
Meyerowitz Investment Management
Mr. Meyerowitz has been investing since high
school, in the 1970s.
After graduating from Brandeis University in 1977; Mark built up his small family business into a large local retailing company.
From the mid 1990s to early 2003, Mark was a broker with Smith Barney and with Edward Jones; two of the largest invest firms in the nation.
Mark and his family have lived in West Orange, NJ since 1987.
|
|
 It
seems like years since its been here, but this humble observer
of the stock market believes that technology stocks are once
again taking their rightful place in the forefront of stock
market leadership.
With a Presidential election campaign already begun, the usually
strong medical stocks are finding themselves under the weather,
as candidates Clinton and Obama zero in on the cash generated
by these companies to help finance their universal health
care schemes.
Restaurant stocks are also having a tough time. Ethanol production
is creating a tighter supply of crops. This pushes up the
prices to restaurants, which may not be able to pass price
increases on to the consumer.
Housing stocks are in the doldrums, as new h ousing is over-built.
Real estate investment trusts are struggling, as their yields
have gotten very low, a dangerous thing in an international
environment of rising interest rates.
There are a couple of bright spots. First, some stocks of
retailers are hanging on and hitting new high prices, in spite
of the death announcements coming from Wall Street firms for
the past three years. Someone forgot to tell the teenagers
that high gas prices mean they shouldn't go shopping and buy
new iPods.
And therein lies the secret of the technology revival: you
could draw a line connecting our teenagers, to new cellphones,
to new iPods, to new cameras and laptops which require new
software. As cable and phone companies rake in the money,
they are also spending to beat the new competition: each other.
Add in the fact that business is awash with money that is
being earmarked for "productivity gains" and you have a bullish
scenario for tech stocks.
|
