I'm also with those guys on a major correction this summer. It's already started: siliconinvestor.com
Warning's season coming. Looking for more bad news, no visibility of a bottom, more inventory backlog problems, and of course more layoffs. IBM got away from warning, and lowering future outlook last Q. I don't think it will this time.
No amount of rate cutting by the Fed is going to magically free up this tech inventory backlog. Who wants to buy Cisco routers if there is no need for them. Same goes with Cell Phones (NOK, ERICY), fiber equip, and storage hardware. We are nearing an upgrade cycle of PCs, but with all the layoffs, the companies have spare parts until they can see a reason to upgrade to new systems hopefully next year.
Software companies are what I think the only ones worth buying this year. The companies will always buy, or upgrade to new software, before they spend money on new systems. Plus, new software is improving business plans, strategies, executions, and sales without the need for more bodies.
Twick |
