Technology funds are up 36% year-to-date through last Tuesday, making them the best-performing equity category so far this year, according to Lipper. Thats great news, but it has some fund managers worrying that investors might think happy days are here again, Reuters reports. And according to Money magazine, some investors are again flocking to unprofitable technology firms.
Some managers viewed Hewlett-Packards recent disappointing results as an early indicator that the tech rally could soon falter. "Theres certainly some who feel that tech has gone too far, too fast, and this is an indication that things arent as good as the market believed," Rick Meckler, president of LibertyView Capital Management, told Reuters.