I will not abandon tech stocks because the end of their downturn is near

"In the old days, we would go this low in tech and it would trigger a giant rally. Maybe the catalyst was a takeover. Maybe it was the recognition that these stocks had all become too cheap. Or we would hear that some gigantic technology fund had blown up, the selling was over, and now it was time to swoop in and buy.

This time we have no catalyst. On Friday, the tech-heavy Nasdaq Composite fell nearly 4% in a broad-based sell-off on Wall Street. The stocks, as we say, want to go down. The tech names have somehow become the most sensitive to the dollar and to the alleged slowdown in the internet.

There's also the problem of too many software names. Venture capital funds have become lovers of anything related to software and can easily jam these stocks down the throats of greedy brokers. Consequently, we just don't know what to do with them all. When you have an Adobe (ADBE) and a Service Now (NOW) deliver perfectly good quarterly numbers and the stocks still get hammered, that's soul searching time. There are tons of companies like them and they are all doing well enough not to fall precipitously — unless we have another day like Friday."

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