Strategist Predicts Rebound in S&P Tech Sector Funds

The information technology sector has surpassed financials as the largest sector in the S&P 500 index for the first time since early 2002, Howard Silverblatt, senior index analyst for Standard & Poor’s, told BusinessWeek.com.

IT currently makes up 16.26% of the S&P’s market value, compared to 16.19% for financials.

Technology funds like Wayne Collette’s Columbia Technology fund have been solid performers for both three-year and five-year periods, as managers look for opportunities in the large-, mid-, and small-cap space throughout the world.

While technology stocks fared well in 2007 – posting an average gain of 15.5% on the S&P – tech stocks have lost almost 7% so far this year, mostly due to a terrible January and February.

Despite this bad news, S&P Equity Strategist Alec Young is forecasting a 17.4% increase in profits by the end of this year.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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