bloomberg). The service refers to speculations that consumers & business will cut spending because of the sluggish economy.
Maybe so, but I believe those spending cuts, if they will come, will be short lived. I reckon the dip is a opportunity for investors with a long term horizon to invest into a sector which will become even more important.
1. Consumers love gadgets like smartphones, tablet computers, e-book-readers and other digital devices that give them access to the Internet. Therefore the numbers of Internet user is rising and people are spending more time and money on the Internet for E-commerce and other services. Hence the demand for devices & software that enable the growing data streams (chips, server, router, transmitters, satellites and more) is rising.
2. Technology is getting more and more important for our every day life. Chips & software are increasingly used for entertainment, communication, security, controlling room conditions, monitoring cars, steering household appliances and a lot of medical purposes.
3. Companies will have to invest more into hard- and software to adapt to a rapidly evolving world. They will use more technology to squeeze costs out of the system (for instance automatization) and to process a deluge of data to respond to competitors and to exploit chances on global markets.