Of course, but I'd be willing to bet that, at current levels, there remains more downside risk than upside potential in the tech sector over the next five years. The higher the purchase price, the greater the probability of negative surprises. Not necessarily, but it does mean investors should pay closer attention to what they buy and how much they pay. If after weeks of me harping about valuations you still want exposure to this sector, I'd advise doing so with a more conservative play. Mackenzie Financial's Universal Future fund is probably the single best way to invest in the tech sector right now, with its technology core and many risk controls.
Risk is controlled in four ways.
This fund is not a pure tech fund. It holds about 50 to 60 percent in technology, about 20 percent in energy stocks, with the rest in cash and a diversified group of picks. The energy component nicely offsets the tech component to smooth out returns over time. Lead manager John Rohr also has a broad definition of technology, which gives him more flexibility to buy stocks that are leveraging technology to grow their business even if the technology itself isn't its core product. Finally, Rohr is more sensitive to high prices, as compared to other tech fund managers.