Look to tech stock, investors urged

Andy McNab, associate investment director at investment management company Rensburg Sheppards in Leeds, believes technology stocks should form part of a conservatively-run portfolio.

He said: “Laptops, mobile phones and broadband may be pretty commonplace in the developed world but the pace of change is accelerating. The average phone user tends to swap their handset every 12-24 months and PCs have almost become disposable items.”

Growth from the developing world is burgeoning, which is also having an impact on the market. Chinese laptop demand grew by 50 per cent in 2010.

Mr McNab added: “More and more we live part of our life on-line via emails, Facebook, storage of our precious photos – we now publish on the web snapshots so poor, they would not have made the album. These are all stored out there online and we do not spare a thought as to where. However, somewhere, someone is paying for those storage facilities spending hard-earned cash on buying and maintaining the hardware.

“Technology’s contribution to lessening environmental impact should not be ignored. As an example, LEDs could be the future for both home and commercial light fittings, saving electricity.”

A decade ago, the US technology index fell by 83 per cent, a level that was not even breached during the market crash following Lehman’s bankruptcy but the last 10 years have created an opportunity that should be considered, he said.

“Many companies successfully survived the bust and many others stepped in and took over the mantle of those which did not make it. These companies are now making profits from trends that 10 years ago produced nothing but hot air. They will certainly grow more quickly than the global economy, but not without some ups and downs.

“In time they will once again become more highly valued than the average company’s shares and reward the patient investor.”