Five Reasons to Be Long Tech
12/22/2006 1:12 PM
OK, OK, so let's get back on the "believer" side of the coin. Here are five reasons why I want to be long tech in 2007:
- The Internet seems to have crossed some sort of tipping point of profitability and productivity. So many platforms have been built on the Internet -- such as Adobe's Flash, or Ajax -- that all of us are leveraging as we surf the Net to become ever more productive.
- Emerging-market ETFs are proliferating, creating an instantaneous diversified channel for capital flow into places in the world that have all kinds of resources that the developed world can tap and create virtuous growth.
- Speaking of capital flows to developing areas, I outsourced to India the programming for some Web 2.0 projects that I'll tell you more about next year. I've now hired two college grads here in the U.S. to manage and build those projects. Outsource to create jobs in the U.S.! It's not a zero-sum game, and that's something that really gets me bullish for the next few years as this trend accelerates.
- In last month's TheCodyReport.net, I coined the phrase "the 3GVG cycle" for the developing third-generation video-game-console cycle that will hit the mainstream next year and then show huge growth into 2008. That cycle is going to boom, and it will trickle down into all kinds of tech plays.
- Surely you know what my closer is going to be, right? Vista, baby, Vista. Microsoft's new operating system is completely underestimated in how it will spur not just demand for PCs and all things thereby related, but also all kinds of new killer apps that we can't conceive of yet, because we're not as smart as the 1.5 billion people who will be using Vista over the next five years.
At the time of publication, the firm in which Willard is a partner was net long Adobe and Microsoft, although positions can change at any time and without notice.