These concerns have once again bogged down the technology sector. During the last few years, investors betting on high technology did extraordinarily well. And when those stocks got fully valued, investors looked around for a technology sector with lower valuations with growth potential. Investors tend to see both groups as high-growth opportunities where technology will solve some problems. Tech companies are selling their products to the corporate world to improve productivity, while biotech is selling to save lives.
Investors tend to play one sector against the other.
The technology sector was hit hard in the latter part of 2000 and the trend doesn't appear to be letting up, because companies who buy technology products saw signs indicating the economy is slowing down, caused by rising commodity prices, and thus cut back their own purchases. When one company announces a dramatic slowing of sales and cutback of purchases, the pack usually follows. It's one big market - all sectors feed on each other. And when people see commodity prices fall, they will buy more technology, tech will come back, and then biotech will roar back. Such Information is neither an offer to sell nor a solicitation to buy the securities of any company.