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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (67348)	3/13/2005 6:03:55 AM
From: beach_bum	Read Replies (1) \| Respond to of 77400

I was curious myself and looked up the numbers. I took Nasdaq as a representative of hitech (growth stocks). Here's what I found. finfacts.com the Annual return from 1938 to 2004 is about 9.2% (its lifetime) the Annual return from 1965 to 2004 is about 9.1% the Annual return from 1975 to 2004 is about 13.2% the annual return from 1975 to 2000 was about 18.5% (before the party was busted) The decade from 1965 to 1974 sucked. The 3 decades after that (including the bust in last 5 years) hasn't been too bad. I dont have numbers for DJIA. bum.

To: Amy J who wrote (67348)	3/13/2005 4:05:14 PM
From: GVTucker	Read Replies (2) \| Respond to 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.