So Kapur sees continued bountiful years for stocks at least through the end of the decade. Andrew Xie, an analyst with Morgan Stanley, says Japanese tech stocks are a better buy now than European tech shares, even though Europe is ahead of Japan in adapting to new technologies. Xie, who is based in Hong Kong, predicts non-Japan Asia will benefit strongly from outsourcing of tech manufacturing. Morgan Stanley strategist Byron Wien says tech-related industry groups such as media, semiconductors, data networking and telecom equipment should do well because of the increasing use of technology. Potential old-economy losers include utilities, building products, consumer staples and banks.
Many industries are able to become more productive because of technology.
Energy companies, for instance, are much more efficient at finding oil and gas deposits. Drug companies are more adept at finding new medicines. Meanwhile, the Internet is bringing increased competition to other industries, shredding profit margins. The Kiplinger Washington Editors, Inc.