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2001 BW 50

SPRING 2002

THE TECH OUTLOOK

Dueling Technology Portfolios
Here are two different ways to invest in the tech stocks in the S&P 500


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If you're not willing to forego the tech sector entirely -- who knows, 2002 could still be a turnaround year -- you may be wondering what the best approach might be. To give you some ideas, here are a couple of sample portfolios of $100,000 invested in tech stocks (excluding biotechs and telecommunciations services). You'll find that these portfolios grow at different rates and have different volatility characteristics. Use them to gauge which investing style suits you best.

The first portfolio contains the three tech stocks in the BusinessWeek 50. These will be large-cap tech companies in the S&P500 that have strong long-term momentum, which is measured by one- and three-year stock performance. Last year's BW50 Tech portfolio declined 27.6%, compared to a 19.5% loss in the Nasdaq over the same period.

The second portfolio pulls together 26 big-name tech stocks. These are the bellwethers of high technology, the Microsofts (MSFT ) and Intels (INTC ) of the world. See how they stack up against the more growth-oriented BW50 tech portfolio. Last year's Blue-Chip Tech portfolio lost 21.87%.


MARCH 25, 2002




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