Fund companies garnering big investor flows in recent months include Janus Group, Invesco, and PBHG Group. Janus, which offers a broad array of actively managed funds linked to technology, has shot from the 10th-largest fund group in the past year to No. 5. Health and biotechnology funds also soared up an average of 18 percent. Growth funds specializing in mid-sized companies were up an average of 17 percent. Still, last week's downdraft in the Nasdaq index in part reflecting the sudden plummet in Microsoft shares, following an adverse antitrust ruling once again raised questions about whether even actively managed fund managers can keep their batting averages in record-book turf while the overall market sags.
Employment remains strong.
More US goods are being sold abroad as Europe and Asia rev up regional growth. Consumer confidence, although dipping recently, remains robust by historical measurements. Indeed, productivity gains should continue to bolster the technology sector, says Mr. Kadlec, as more companies increase their computerization. Even many fund managers with hefty exposure to technology remain essentially bullish. His fund has over a 50 percent exposure to technology.