Michael Shulman

How to Bet on Tech Without Losing Your Shirt

by Michael Shulman   11/26/08

Many investors are asking, "Is it time to buy tech? Won't companies buy technology before they spend on anything else? Aren't there certain names that can escape a spending slowdown?"

The answers are "no," "no" and "probably not, except for Apple (AAPL)."

How do I know?

The ChangeWave Alliance.

The ChangeWave Alliance is an intelligence network of more than 20,000 business, technology and medical professionals -- as well as early adopter consumers -- who work in leading companies of select industries.

We have been surveying these folks for more than seven years, and our most recent corporate information technology spending survey showed that spending is not just slowing down -- it's heading off a cliff.

Common sense also says that the slowdown in business will hit capital spending, which means less spending on IT.

In past downturns, new technological advances have countered this trend, as companies used scarce capital to buy new, cutting-edge technology to gain a competitive advantage or simply to maintain their position in the marketplace.