I write this post every 3-4 months... I am completely at a loss at investors infatuation with tech stocks. These are, for the most part, cyclical stocks that turn with the economy. I wrote many pieces last summer about "tech is not a safe place to hide out" when the pundits said you can hide there. Each time this market turns, people flock to the technology stocks - aside from a handful with a fortress balance sheet (high cash) and a few nice growers - the rest are no different than buying Honeywell (HON). It's a decade later and I still think some people think its NASDAQ 1999.
Qualcomm (QCOM) is one of the old school names - solid company and gun to head if I had to buy tech this would be one name I'd say is ok for a 3-4 year horizon, but it's not impervious to the economy. Broadcom (BRCM) is another. Cisco (CSCO) is another. Juniper (JNPR) reports tonight and is another. EMC (EMC) is another. Nokia (NOK) is another. What's the infatuation? Outside of buying the router companies on "the Obama broadband thesis" I don't get it. My only guess is there are so few themes to play with financials and commodities beaten to a pulp that my process of elimination people keep coming back to "old tech".
Reduction in future about 10%...
Again, I actually LIKE Qualcomm all things being relative so I am not picking on it; but I don't get the love affair with tech. Too many people are still living in the late 90s. We spend more time in the media focused on a walking dead company like Yahoo (YHOO) than on the future leaders.
What is even more amusing are watching people pile into the most cyclical area of all - semiconductors - anticipating the "recovery in 6 months". They've tried this trade about 4x the past 10 months. Everything is by the "playbook" in Wall Street world - the herd is so predictable.
Fund my Mutual Fund
Disclosure: No positions