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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 79.31+1.7%10:48 AM EST

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To: Amy J who wrote (67348)3/13/2005 4:05:14 PM
From: GVTucker  Read Replies (2) of 77400
 
Amy, RE: Let's be specific to the technology sector.

I'd find it hard to believe hitech growth didn't beat value over the past forty years where some of the greatest hightech inventions occurred.


It's kind of difficult to define the "technology sector".

In the 1930's, I would think that AT&T would be classified as high tech. Fifty years later it probably wouldn't. Would radio or television broadcasting be called high tech? It definitely would in one era. It wouldn't now.

All I know is that investing in high PE stocks has underperformed low PE stocks over time. The market tends to get overly optimistic with high earnings growth. I don't really have any idea how that relates to the technology sector, but I don't worry about that.
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