Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Tech Stocks - Why You Should Be Optimistic for the Rest of 2015

Companies / Tech Stocks Jun 10, 2015 - 10:50 AM GMT

By: ...

Companies

MoneyMorning.com Michael A. Robinson writes: On Dec. 10, I forecasted a good year for tech investing.

After the tepid first quarter – a 0.7% contraction in U.S. gross domestic product (GDP) – you might think I’d adjust my prediction.

On the contrary, over the following months, I’ve shown you how the technology sector has led the market higher and driven the overall U.S. economy.


So far this year, the tech-heavy Nasdaq Composite Index is up 7%, more than four times better than the Standard & Poor’s 500 Index’s 1.64% gain.

Plus, as we move further into the year, it looks like that grim first quarter was a blip – not the start of trend.

With that in mind, let’s take a closer look at what caused that “blip.”

And then I’ll show you some numbers that prove we’re already bouncing back – and that will boost your tech portfolio for the rest of this year…

Poor Weather, Labor Disputes and a Strong Dollar – Oh My!

A couple of relatively negative reports International Monetary Fund turns up what caused the first-quarter doldrums.

In a June 4 report from the International Money Fund, the agency calls on the U.S. Federal Reserve not to raise interest rates until 2016. The reason: IMF officials say the U.S. economy has lost some momentum lately due to the strong dollar and a labor dispute at West Coast ports that slowed down shipping.

In April, the IMF forecast U.S. economic growth this year at 3.1%, but its June 4 report cuts that figure to 2.5%.

Then there’s the recent report from the Association for Manufacturing Technology.The trade group says total U.S. tech orders in the first quarter declined 18.7% from the year ago period to $399.8 million.

However, a closer look at that report indicates that the U.S. economy during first two months suffered because of terrible weather throughout the nation.

The report doesn’t come out and say just that, here’s how I figured it out: After two anemic months, March orders soared some 30% from February.

And that’s the bad news…

Strong Auto Sales

In May, automakers reported sales that were nothing short of a blowout. According to market researcher Autodata Corp.,the industry had an annualized sales pace of a stunning 17.8 million vehicles.

That compares with average sales rate over the past decade of 15.2 million and, if it holds out, would be the highest sales volume since 2001.

It may seem odd that I, a tech analyst, pay so much attention to auto sales. Of course, the auto industry has for decades played a critical role in the U.S. economy

But there’s more to it than that. Vehicles have become rolling showcases of sophisticated technology. The “connected car” features everything Bluetooth integration and Wi-Fi access to rear view cameras and in-dash infotainment centers.

Meanwhile, to boost sales and make vehicles safer, carmakers are adding advanced driver assistance systems (ADAS) – that is, self-driving features. I’m talking such items as adaptive cruise control, lane departure warning systems, and front and rear cameras integrated with collision avoidance radar – all of which need software, sensors and semiconductors.

Then there’s the sales numbers at Tesla Motors Inc. (Nasdaq: TSLA). The company, which makes and markets the best electric vehicles on Earth, has begun unveiling self-driving technology.

May sales for Silicon Valley’s only car company are off the charts. For the upscale Model S, sales climbed some 50% from the year-ago period to 1,652 vehicles.

The Brains of the Tech Economy

There’s plenty more driving the economy than auto sales. And there’s one thing in particular I look at when taking the temperature of the entire tech economy – semiconductors.

According to the Semiconductor Industry Association, global chip sales hit $83.1 billion in the first quarter. That’s up 6% from the year-ago quarter – itself a boom period.

Semiconductor sales are a barometer for the entire global tech ecosystem for a simple reason. They’re integral to most of the tech products that consumers and businesses simply cannot do without – smartphones, factory robots, streaming media players, printers/scanners/copiers, personal computers, Wi-Fi Internet access and those connected cars I just talked about.

Meanwhile, market bears keep warning us that the rising value of the dollar will dent our ability to export all those high-tech products and could cause the economy to weaken.

However, we saw just the opposite happen in April.

According to the U.S. Commerce Department,the trade gap narrowed by 19.2% to a seasonally adjusted $40.9 billion. That ranks as the biggest dropin more than six years.

Given that U.S. GDP declined by 0.7% in the first quarter, this is welcome news, indeed. And there’s more where that came from. 

Rising Sentiment

The rising value of the dollar has had only a small effect on the nation’s manufacturing sector. According to a National Association of Manufacturers poll in April, 88.5% of respondents are optimistic about expansion for the rest of this year.

That sentiment is off about 3% from the previous quarter’s rating of 91.5, but it’s the second-highest rating since the beginning of 2013. In other words, six years into the recovery, manufacturers still see bright days ahead.

That tracks with a report showing that consumers, who account for 70% of U.S. spending, remain upbeat. As measured by the Thomson Reuters/University of Michigan, the consumer sentiment rating for April was 95.9 – the second-highest reading since 2007.

Housing also is on a roll. New permits in April jumped 10%, the Commerce Department said.That monthhousing starts surged 20% to an annualized rate of 1.14 million units, the highest level in 7.5 years.

The economy continues to improve on the jobs front as well. In April, unemployment fell to 5.4%, a near seven-year low, as the economy added 223,000 jobs.

May saw further improvements. For the last week of the month, first-time jobless claims declined 8,000 to a seasonally adjusted 276,000, slightly beating forecasts. It’s a good sign that layoffs continue to decline.

I know these weekly jobless claims can fluctuate wildly. If my honors economics degree taught me anything, it’s that numbers can spike and plummet from month to month and quarter to quarter.

However, since I picked that degree up, I’ve spent a long time in the “real world” studying the market and the economy. And that experience tells me to look at the overall the trend line – and that’s strong.

Moreover, applications for unemployment aid have been under 300,000, a historically low level, for 13 straight weeks. That’s slightly more than an entire quarter.

Overall, this is a strong economic report card.

So I see many reasons to remain upbeat about investing in tech stocks for at least the rest of 2015.

And you can rest assured that I will be continue to use our twice-weekly conversations to provide you lots of ideas about how you can make money from the greatest wealth machine every invented — high tech.

P.S. I hope all are “Liking” and “Following” me at Facebook and Twitter. We’ve got a great community there who are eager to make big money in tech stocks today.

[Editor’s Note: What do you think about the state of the economy? That stock market? Michael loves hearing from his readers. Let him know what you think of his “state of the economy” report by posting a comment below.]

Source :http://strategictechinvestor.com/2015/06/why-you-should-be-optimistic-for-the-rest-of-2015/

Money Morning/The Money Map Report

©2015 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules