I used to be a superbull. Now I'm just a bull.
What we're telling our portfolio manager clients is that technology deserves to be a core holding. That said, we're not as super-enthusiastic because they're not as cheap [as at the start of 1999].
[In the past, many investors treated technology as a cyclical industry when it deserved better. Technology-related capital spending has quadrupled as a percentage of United States gross domestic product.]
In 1999, investors said 'Eureka.' It's a secular industry that's brought about an enormous structural change. This was an important year of inflection. Technology stocks finally got some respect.
[The sector is now fairly valued.] People should not have just one or two names, but a handful. And it should not be the driving force in a portfolio.
~ Abby Joseph Cohen, "Goldman Strategist Remains Bullish, Though Less So, for 2000," The New York Times, December 31, 1999