The Trend in “Big Cheap Tech” is Bullish
With today’s chart, we check in with our “Big Cheap Tech” idea… and note that it’s still working.
Back in September 2010, Steve pointed out how many of America’s elite tech companies – like Apple, Microsoft, Intel, and Cisco – were trading for extremely low valuations. You just had to account for their giant cash hoards to realize it. Despite the reliable cash flows and dividends these companies boast, investors simply weren’t interested in owning them.#-ad_banner-#
As you can see from today’s chart, folks are warming up to our idea. Below is a chart of the “QQQ” fund. It’s one of the market‘s most popular ways to take a diversified position in tech stocks… and it has heavy weightings in the cash-rich giants we cited above.
Like most every asset, the QQQ fund suffered a sharp selloff during last summer’s panic. It spent the next four months “collecting” itself and forming a price base. It has used this price base to spring to a fresh multi-year high. The trend in “Big Cheap Tech” is UP.