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Way to -- the tech sector's recent troubles Apple's stock has plunged since reaching an all time high.
Is September while Bellwether Hewlett-Packard is down more than 40% over the past year.
But we have someone who says not all tech stocks are trouble and he has three ways to play volatile sector joining me now is Jefferies investors places dot com.
Editor Jeff great to see yeah that's -- -- so let's -- out sort of the scenario that most people are familiar with whether they read the Wall Street Journal MarketWatch whatever which is.
That the PC market is -- the tech sector is is restructuring itself as a result of this development as we go mobile.
And some will succeed and some will not I mean Dell was one of those examples of the company that was that's dragged down by the PC -- what and who.
Benefits because of this major change.
Well two things I think that there is -- -- mobile revolution if you wanna be right place right time and that that's that's a harder kind of speculative play but.
A lot of attacks -- that I think people can benefit from on you know it's kind of a cut in iteration of the tobacco investment right -- -- a highly regulated industry does not lot of growth there but.
Let's not say it's been a bad investment the last five or ten years so he can get decent dividends and some stability in tech stocks I think that's good.
There are kind of like the long -- -- as you if you wanted to for the -- -- -- tack that's not necessarily bad and small caps but there are some kind of big.
Blue chip tax socks and I think have a little bit more stability and I think you want okay.
But did did -- -- the general perception that we're moving from a PC -- -- mobile world and those that are caught underneath are going to be -- is is is right.
Well I think it's little bit overblown I mean there's laptops on the table right here a lot of people -- who have PCs in -- office I think that there is -- utility for them.
Going on us not to say there's growth there but I think that you know it's kind of like tobacco stock it's gonna continue to throw let's get your number one pick which is Intel and of course -- a chipmaker that hasn't really.
Figured out the mobile market yeah that is that a correct perception of Intel that it's it's -- but it hasn't really it's not as as there is a lot of other chipmakers great idea that's fair and I mean.
But the real -- in favor of -- like Intel because actually if you look at earnings report when the biggest reasons account had to sell off after earnings is because they had this big capex plan right because.
Intel was the biggest semiconductor stock in the world it's its number two and number three combined in -- market share so if you believe that they're gonna be more chips and more devices Intel as the place to be that even though they haven't gotten they haven't completely figure out the mobile market -- they actually do have a the end of February it is going to be a kind of event were Intel's been unveils an android chips I mean that's let's.
Yet the president faith in the company do you think they're gonna have.
Mobile in the future and I do think they do but on top of that -- -- 4% dividend.
-- they have a huge market over 4% right right so Abbott today it's 43 so you have to realize that I got a text processing power that's that's a different than what the swing trade you -- momentum -- IBM big old blue why do you like -- I mean like IBM because after earnings they pop -- they pop 5% I think this this is accompanied it showed where.
Enterprise is intact I mean I got the Watson business and -- technology they have server business they have services.
So Intel is a little bit of everything her I'm sorry IBM's -- everything they have.
You know kind of cloud computing I think that -- the right place right time to have the scale amazing that it beam often a huge company like this can adapt usually -- old.
Companies he's bagel companies cannot -- but this -- has finally Qualcomm.
We know -- apple usually as apple goes so goes Qualcomm but in this case you -- -- -- better shape what I like apple because our like the -- I'm not just because they -- apple but they also have the snapdragon -- is an android devices so for a lot of investors up ever wondering whether or not you should do the kind arm wrestling match between.
Google and apple -- -- -- -- a good way to play all mobile devices it's a way to it to do any mobile device it has connectivity to the Internet.
I gotta get all of the universe of brands and that's -- like Qualcomm because consumers may not know that it's and everything from android.
The iPhone 5 so that allows you had your bat sell finally if if you believe in tech.
You go through to an ETF you don't want you to focus in on one company a company you go to an exchange traded fund -- -- -- fund.
Apple has brought down those funds tremendously over the past six months now that that downdraft from apple has been worked in the -- -- is now the time to go into.
Why do you think generally speaking 12012 has been proof positive that the index funds work I mean if you if you really are -- it's kind of small retail and restaurant I believe in index funds -- low cost their way to play general flavor.
What -- do in the stock picking like whether or not right on Intel or not and you have to worry about that you can -- bats bats for the index funds so.
I do think an apple has drawn them down because some of these funds have about 1415% of apple -- but still they're a little bit overweight and apple still just because of the way that a lot of these indexes are made up so you are gonna be slightly overweight and apple but I do you think it's a good way for regular investor to hedge their bets over.
You know a large -- house it's time to get in if you haven't gotten itself for because Apple's already gone -- the -- been worked in the numbers -- and if you look at an index like the S&P 500 I think about 18% of it is -- stocks right now so even if there's 500 stocks.
Roughly one in five -- in the tech sector anyway when you look at the market cap Wei Jefferies investor place dot com great to see -- thanks very much.
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