Maybe this is as bad as it gets, suggests Arnie Berman, technology strategist at
Soundview Technology Group. "It has been absolutely sickening to look at the
screen every day, but I still think there's very compelling reason to be involved,"
Berman says, noting that growth in the third-quarter should turn positive on a
year-over-year basis. "Right now, it's viewed as a lunatic statement to suggest that
tech stocks and tech spending will stop going down, or that the recovery will be
anything but shallow and not very compelling. Given that conventional wisdom,
right now I'm kind of a lunatic."
The bull case boils down to this: Look out two or three years and tech companies
should see improving demand. Berman, for instance, believes the vicious cuts in
IT budgets of recent months have resulted in growing corporate to-do lists --
while some technology projects were cancelled, others have simply been
postponed. There is pent-up demand, he says, for a wide range of technology
goods.
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