Which sector may deserve a larger portion of your portfolio
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Which sector may deserve a larger portion of your portfolio

With the NASDAQ Index up 15.9 percent in 2012, many individuals are considering allocating a larger portion of their portfolios to the technology sector.  What are some important trends and statistics to keep in mind when contemplating this decision?

  • Businesses are looking to make technological upgrades. Information Technology Consulting is a unique industry that is finding integration opportunities in financial, healthcare and retail businesses like never before. IT consulting refers to technology consulting firms that advise businesses on how to best use technology to meet their objectives. With the economy recovering, businesses are looking to make those technological upgrades that they may have put off during the recession.
  • The use of mobile devices has grown vastly over the past several years. The world now has over 4 billion mobile phones in use, of which 1.08 billion are smartphones and 3.05 billion of them are SMS enabled. The smartphone market is projected to have sales of 650 million units in 2012, a 35% increase from 2011’s sales of 481 million units.
  • With any technology stock, the company is only as good as its latest product. In the technology sector the barriers to entry tend to be minimal from a regulatory standpoint, and competition is steep. If another firm comes out with a superior product, an entire revenue stream could be wiped out in a matter of months.

 

Nasdaq Composite Index. 25 April 2012. Google. 25 April 2012. http://www.google.com/finance?cid=13756934.

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