Now that much of the world’s techsmarthere structure and stock markets have pretty well imploded, many investors are looking for what sector to invest in for the highest potential reward and the least amount of risk.
For a number of reasons, I think that the technology sector will again rise to the top of the selection list for investment opportunity. Technology newsletters were pretty much thrown aside after the technology bubble burst almost a decade ago.
If you think about the current economic situation in the United States, what sector of the economy is more important and more interwoven into the fabric of almost everything else than technology?
Significant amounts of manufacturing have been moved to lower cost countries like China, financial services have shot themselves in the foot and will only re-emerge with even more complex regulations, and even agriculture is highly dependent on technology to maintain profitability.
So doesn’t it make sense that people who specialize in investment newsletters and advisory services should seek to put together a team of specialists to offer a cutting edge offering for investors wanting to profit from the technology sector?
I have been highly involved in technology and information services for the past several decades and have always been either long or short certain stocks in the tech sector. But I have to rely on others to gather the necessary information before I decide to buy or sell a stock.
For instance, just because one software company makes the best tools in its field doesn’t mean that management knows how to leverage that quality product into a profitable company. Likewise, just because a company has an inferior windows based operating system does not mean it will not become a fantastic investment.
Therefore, knowing that you want to invest in technology is not enough. You need specialized help to know which technology stock to buy and when to sell. In fact, knowing when to sell can be more important than knowing what to buy. It is this information that will make a technology stock newsletter worth the price you pay for it.
And nothing indicates that more than the previously mentioned bursting of the tech stock bubble at the beginning of the decade. Buying a stock at $10 per share and watching it go to $150 per share is fun, yes. But if you do not know when to sell and watch that stock plunge to $1 per share in short order, all the fun is gone; along with the profits.