A Huge “RIP” for Big Cheap Tech

It’s been a heck of a 2012 for our “Big Cheap Tech” idea. The “QQQ” has soared 16% since the year began.
 
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, the market is going wild for “Big Cheap Tech.” 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’s heavily weighted toward 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 used this price base to “rip” 16% since the year began. From a very short-term viewpoint, the QQQ is due for a “breather.” But the long-term trend is UP for Big Cheap Tech.