There's nothing like a long losing streak to scare investors, and today's market action did nothing to allay those fears. With a 31-point drop, the Dow Jones Industrials
Today's weakness in the tech se ctor highlights the tug-of-war between weakness and growth, as the Nasdaq Composite
From a longer-term perspective, what's clear is that investors aren't giving these companies full credit for being able to innovate their way toward future growth. Despite tech venture capitalist Marc Andreessen's assertions that Cisco and Microsoft are undervalued, Fool analyst John Reeves notes that even well-established firms have found it impossible to keep up with changing times in the technology space.
What may be behind tech's uncertainty is simply the need for Intel, Microsoft, and Cisco to find customers willing to spend money. In a questionable economy, businesses and consumers alike prefer to put off making spending decisions. But when broad-based economic growth finally comes, then the pent-up demand could send tech companies soaring.
Put on the rally caps
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of Cisco Systems, Intel, and Microsoft. Motley Fool newsletter services have recommended buying shares of Intel and Microsoft, as well as creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.