With the market constantly going up and down, and back up and back down, and who knows where tomorrow, people are having a tough time deciding where would be a safe place to invest their money. Which stocks should you purchase so you don’t have to wake up worrying that your investment has gone down the drain? We have all heard that gold is the way to go these days and there is no way you can lose. A few of my colleagues have even written other blog entries on the topic, but is there a new trend on the horizon? Are technology stocks making a comeback?
I know that technology can be a scary place to invest your money, but recently investors have had their head in the clouds when it comes to technology… cloud computing that is. According to Bloomberg’s rankings as of September 2010, technology portfolio managers whose funds drew the highest scores have declared that cloud computing is what is hot when it comes to technology stocks in today’s market.
The data centers and data storage that cloud computing provides are becoming extremely important in numerous industries, not just financial services. Instead of companies having to build an internal data system that could cost them a ton of money, they are choosing to invest in the cloud, and tech companies are seeing and wisely taking advantage of the demand.
Data storage stocks have had an impressive run in the September quarter according to businessweek.com and some people think that this is just the beginning of a cloud computing expansion. Charlie Chai, a manager of the Fidelity Select Technology Portfolio, says that this is only “year two or three,” of a 10-year architectural shift toward cloud computing. So it seems things can only get better (and when was the last time you heard that?!!!).
We here at FTF have heard the buzz around cloud computing for quite some time now in the financial services industry. We hosted our 1st Cloud Computing breakfast briefing this past April, and are planning our Cloud II Breakfast for January, to discuss the newest trends surrounding the cloud, such as security and cost. With cloud computing being a hot topic within the industry as well as on the stock exchange floor, it should be an insightful event. What have you heard about the cloud?