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    I think the outlook for the tech sector is very dependent upon what you mean by "tech," so I'm going to divide technology into what I'm going to call "old tech" and "new tech". And new tech will be, for example, social media. I'd be more cautious on this part of the market, not because I don't think there's a bright future for many of these companies, but there is a lot of optimism baked into this segment of the market. And we saw what happened in May when that momentum trade was broken. So be cautious about overpaying, be cautious about paying seven, eight, nine times revenue for a company -- or paying for a company that has no revenue at all, which is also going on.

    Instead we like parts of what I'll call "old tech," particularly companies that are geared to enterprise spending -- in other words, derive their revenue from selling not necessarily to individuals but selling servers and hardware and telecommunications equipment to companies. And the reason I'd focus on those: First of all, I think we're going to see some acceleration in capital spending -- in other words, companies spending more for plant and equipment, and the tech enterprise companies will benefit from that. Second of all, they're much cheaper. They haven't had the run-up of a lot of the new tech -- the social media companies -- and they actually represent a bit of a bargain.

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Investing involves risk including loss of principal. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation, and the possibility of substantial volatility due to adverse political, economic or other developments. The opinions presented are those of Russ Koesterich, BlackRock's Chief Investment Strategist, as of May 29, 2014 and may change as subsequent conditions vary. Individual portfolio managers for BlackRock may have opinions and/or made investment decisions that may, in certain respects, not be consistent with the information contained in this presentation. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this presentation are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Past performance does not guarantee future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the viewer.

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