Tech Stocks Still Moving Higher

Tech Stocks Still Moving Higher

Stock markets have been getting a lot of attention this year as many of the most commonly traded benchmarks in equities have risen to new records or at least long-term highs.  This is great for investors that are already invested using a well-diversified portfolio.  But for newer investors that might be looking for ways of capitalizing on these trends will need to identify which sectors are likely to improve over the next 6-12 months.

One of the best examples here can be found in the tech space, as quarterly earnings performances have consistently beaten the initial analyst estimates.  In many cases, this has sent tech-heavy market highs for new highs during the year.  In the commonly traded NASDAQ 100, we are now seeing price levels that have not been seen for more than 15 years.  This was when the famous (or infamous) tech bubble startled markets just before the turn of the millennium.  This was a closely-watched and defining moment for the financial markets, so the fact that we have once again crossed above these points is significant.

New Trends in Digital Advertising

One reason for these major moves to the upside in tech stocks can be seen in the fact that tech companies have become the best resources for advertising in the new digital world.   According to recent industry reports from WeAreForce, an International Digital Media Advertising Agency trends in digital clearly favor those with a tech base rather than those with a traditional print media base.  For this reason, investors looking to capitalize on tech should remain aware of the trends that are seen in the ability tech companies are able to show with respect to increasing market share in digital advertising.  If tech companies are able to continue with these trends and to build on them, it might then be possible for tech stocks to reach much higher highs.

So the real question that investors should be asking at this stage is whether or not these moves are sustainable.  If they are, it is clearly time to buy.  If not, it is clearly time to sell, as we are trading at very elevated levels.  These are all questions that will need to be asked in the future.  There are not many sectors in the stock trading world that are more popular or profitable than tech.  Those are are able to successfully navigate these environments would see substantial profits.  This that are not, will likely miss the boat entirely.