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Is it time to sell technology stocks?
Author(s) -
Tokic Damir,
Vezilic Stijepo
Publication year - 2010
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20604
Subject(s) - earnings , stock (firearms) , stock market , economics , business , growth stock , government (linguistics) , stimulus (psychology) , monetary economics , finance , restricted stock , engineering , mechanical engineering , psychology , paleontology , linguistics , philosophy , horse , biology , psychotherapist
What's ahead for technology stocks, and the stock market as a whole? There has been an impressive rally in technology stocks since March 2009. But as we write this in April 2010, technology stocks and the stock market overall still appear to be modestly undervalued when looking at current values with respect to expected earnings for Standard & Poor's 500 companies in 2010. However, the authors believe that the government artificially inflates the earnings with various economic stimulus programs. So the stock market rally can continue‐as long as the government is able to support it. But what happens when the money runs out? And what about the risks of excessive government spending? © 2010 Wiley Periodicals, Inc.