Where are the Opportunities in Technology?

Technology investment faces an inherent challenge: its limited shelf life. The transition from product innovator to has-been tends to be short compared with other sectors

Coutts 30 December, 2013 | 4:43PM
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This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, James Butterfill, Global Equity Strategist at Coutts ponders the future opportunities in the tech sector.

The thrill hasn’t gone from the technology sector, as Twitter’s recent stock market float proves. But technology investment faces an inherent challenge: its limited shelf life. The transition from product innovator to has-been tends to be short compared with other sectors.

Several household names, like Dell, Nokia and BlackBerry-maker Research in Motion, are arguably in decline, as reflected in their cooling valuations. Semiconductor demand has also slowed while PC sales show little sign of recovery amid the mass migration to smaller devices. IT spending on hardware and services is depressed.

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Coutts  Coutts provides customised solutions for clients private banking and wealth management needs.

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