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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