Computer, Internet and telecommunications stocks are up this year, and value mutual funds, which typically don’t invest in those sectors, are benefiting since many of them have been snatching up these stocks over the past two years, Bloomberg reports.
Between July 21 and Nov. 15, the Nasdaq has risen 21%, compared to the S&P 500’s 13% gain and the Dow Jones Industrial Average’s 14% advance.
The Longleaf Partners Fund, a value fund whose largest holding was Dell as of the last report, is up 19% since July 21.
Richard Parower, manager of the Seligman Global Technology Fund, up 23% since July 21, thinks we are on the brink of a new bull market for technology stocks. “These cycles typically come around every seven or eight years,” Parower says. “Current systems have been fully depreciated, and U.S. companies are eager to start taking advantage of productivity gains from new software and services.”
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.