Is Tech the New “Tech”?
May 16th, 2008 | By Adam Lass | Category: Stock Market InvestingEver since the great tech bubble burst in 2000, everyone has wondered what the “Next Big One” would be. For a while it was real estate. Then it was China. Next, commodities had their stellar run.
Now the first two are on life support, while the third troughs, with no clear signals as to whether it will skyrocket again… or crash and burn.
Could the next asset class to take off once again be technology stocks? Keep in mind that tech products are incredibly portable and scalable.
What’s more, they are the least vulnerable to inflated commodity costs. Indeed, the most valuable asset at any tech company is its people, and labor is available at a relative discount right now.
So what would be the first sign of an inflating tech bubble?
The real launch of the original tech bubble began in November 1999. Oil was spiking 44% a year. Everyone wondered if the rising trend was busted.
Suddenly, the tech-heavy Nasdaq broke out, growing 18% in 30 days, while the stolid blue chips of the Dow Jones Industrials put on a mere 3%. Over the next few months, tech stocks would put on 51%.
Today we see the exact same setup all over again: Oil is spiking, and the long rising trend has been broken.
And once again, tech stocks are once again breaking away from the pack, growing 12% over the past 30 days compared to the Dow Industrials’ paltry 5%.
Will this micro-boom grow into the next bull market with tech stock prices doubling monthly? Why wait to find out when you can create your own boom right now?
WaveStrength Options Weekly readers are holding call options against three key tech stocks. All three are expected to double in price over the next 30 to 60 days!
Adam Lass
Editor, WaveStrength Options Weekly
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Adam Lass is the creator of the 