One-year returns for some funds to the end of January this year hit 100 per cent, and 1999 looks like it could be another good year for the tech sector. Data to February 28, 1999.
Some analysts are skeptical about a continued boom.
The Nasdaq 100 index of high-tech stocks has risen 385 per cent over the last three years, which causes overvaluation concerns for some investors. It is certainly the case that many Internet stocks are overpriced. But that's not the case for many of the more established providers of hardware and software. Take Dell Computer, for example, which experienced a great deal of volatility in the past few months. These numbers are in sharp contrast to many Internet stocks that have little or no revenue and have negative earnings, yet boast market capitalizations in the billions.