For those of you that don’t have a position in the Technology sector in your portfolio, now is the time to buy. Big institutions (i.e. mutual funds and hedge funds) all obey an investment cycle. These big institutional investors are the ones that move the market and whose investments are the ones that counts. According to Jim Cramer (A former hedge fund manager, who has his own show Jim Cramer’s Mad Money on CNBC, which I highly recommend for people to watch) now is the time in the investment cycle to buy tech stocks because the big institutions are now buying tech stocks. The two stocks that he recommends now are Dell (DELL) and Hewlett-Packard (HPQ). However whatever tech stock you ultimately buy into, you should sell the stock by no later than January 31, because as you can guess that is when the big institutions begin to sell their holdings in the technology stocks. The only exception to this (according to Cramer) is Apple (AAPL), this is the only stock that historically does well year-round and doesn’t move with the investment cycle. So, for any of you looking for something to buy during this down time in the market, definitely rid yourself of Financial’s (because they are definitely taking a beating) and get yourself into the Technology sector. At the very least definitely take some time to look at Dell and Hewlett-Packard, for they come highly recommended by Jim Cramer. Remember it is almost back to school time for a lot of students, and students will be in the market for technology products, which will definitely bode well for the growth and earnings of companies like Dell and HP.
Don’t know what to buy? Now might be the time for tech stocks