Bulls are saying that everything is so bleak and washed out it can't get worse. But for the rest of the year, I think we'll see some weakness, and I'm cautious. Do I believe we're going into a long-term famine? Absolutely not. Tech is still the growth driver in many parts of economy.ON HIS FAVORITE SECTORS
Software companies are higher quality and good defensive stocks. The demand for data storage is continuing unabated, though EMC (EMC
) is still too expensive. I like Bell Micro (BELM
). Contract manufacturers (such as SCI Systems) are another strong trend, although [stock] prices in parts of the industry have gotten ahead of themselves.ON TECH-STOCK VALUATIONS
I try to buy stocks at a 50% discount to their growth rates. If they're growing 20%, I buy them at a [price-earnings] multiple of 10. If they get too expensive, I short them.