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When people talk about investing in tech, people usually think of actually buying technology. To “invest in tech” is to stop buying cheap computers and save up to buy a beast that will actually last you a long time. It’s to start getting your home ready for the technological upgrades that are on the horizon. It’s to ensure you have the tech to support your business. This is the way most people use the term, anyway.
But those who know about technology from a more business- and finance-oriented view know that investing in tech means something more. We’re talking, of course, about actual monetary investment in the technology sector.
Of course, any kind of investment is easier to talk about than it is to actually, y’know, do. There’s this sort of chaos of information surrounding both the investment game and the technology sector, so it can be pretty hard to get your head around. If you’re interested in investing in the tech sector, then check out this quick guide.
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Don’t get too swept up in tech
It’s important not to overstate the importance of the tech sector to investors. Yes, it’s important, but it’s not the be-all-and-end-all of investment strategies. People have a tendency to overestimate just how much IT in general has changed the world. And while it’s become a key player in terms of investment options, it’s still not beaten the classics of the investment game.
It’s best to remember that investing in tech is basically a sexier way of saying that you’re investing in the stock of the tech sector. Investors love stock, but they also diversify their portfolio where they can. Everything from real estate from top agents or gold from USGoldBureau is still used to diversify and strengthen an investment portfolio alongside investment in the tech sector.
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Tech is still a hot investment
If you’re going to purchase stocks as an investment, however, the tech sector could probably be your best bet. After all, these are the industries that are growing the fastest right now. Companies who are doing well in mobile technology and virtual reality are probably the most obvious bets, but there are a lot of technologies that don’t have some a catchy ring to them that are going to be hot throughout 2017.
You shouldn’t think of the sector as one easily-read whole; split it into particular sections. You have gaming technology, retail technology, mobile technology – a whole host of categories. One area it may be worth investigating is retail technology. Multi-channel shopper tracking, mobile point-of-sale, and social media analytics are all great examples of less-famous technologies that are worth investigating.
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The key names
Don’t just assume that Sony, Microsoft, and Apple are the champions for tech investors. There are a lot of companies with stock that isn’t quite so expensive but is still looking to rise healthily in the next twelve months or so. AMD has seen strong gains, though some warn that it might not last to 2018. Netflix and Atlassian have proven themselves to be worthy of investment, as have the always-sturdy Amazon. Alphabet, formerly Google, is a big name, but certain issues with how they’re running YouTube are creating a precarious situation for 2017.