When I look at the rest of the market and when I look at projected growth of earnings, the valuations are very reasonable. A diversified portfolio, especially one that is not tilted in technology, will do well in the long run. Sun Microsystems, Cisco, and Oracle are excellent corporations. I just question their valuations. I have grave doubts about that.
Academics are usually pretty conservative investors.
I am very broadly diversified. In terms of individual technology stocks, I don't have any right now. Most of my money is in index funds and other diversified funds. But I don't chase after hot funds. I don't try to play sectors.