Banking stocks got us into this mess. Maybe tech stocks can get us out.
Even during yesterday's nasty sell-off, a few tech stock bellwethers managed to rise under the deluge.
| Company |
10/6/08 Gain |
|---|---|
|
Apple |
1.1% |
|
Baidu.com |
2.4% |
|
TiVo |
1.8% |
|
Expedia |
0.7% |
|
MercadoLibre |
10.1% |
|
Juniper Networks |
1.8% |
|
Priceline.com |
0.5% |
Yesterday's gains didn't come easy. Apple, Expedia, MercadoLibre, Juniper, and Priceline all hit fresh 52-week lows during the day before snapping back into positive territory.
Some of the winners had clear catalysts. TiVo received a favorable court ruling. Another sharp drop in oil prices fueled the prospects of online travel enablers Expedia and Priceline. However, most of yesterday's tech leaders on the upside didn't have material news to report. Don't you dare tell me that Juniper rose just because it released the JUNOS for Dummies instructional guide yesterday.
No, most of Monday's winners were likely the result of value-hunters anxious to nibble at some of the attractive prices in tech. Apple for less than 17 times forward earnings estimates? Expedia for just eight times next year's profitability?
That's too rich to pass up for long-term investors willing to withstand the near-term volatility. As long as the fundamentals are still intact -- and they are, for many of the leading tech companies -- nibbling on the right tech stocks makes sense.
Other ways to ride out the volatility:
