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Stock Strategist

Don't Buy the Tech Hype

Buying solid, cheap tech firms is a better bet than chasing after the next big thing.

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 Apple (AAPL) (and the rest of the tech industry for that matter) has a way of building up hype. Despite prototypes of the of the firm's iPhone 4 leaking out, there was still enormous anticipation as Steve Jobs took the stage at Apple's developers' conference to officially introduce the new smartphone.

From the mainframe era to the early dot-com craze to today, the industry has been expert in hyping its products and informing us how they are going to change our lives. The buzz surrounding the emerging tablet market among others has led tech, on both the software and hardware side, to be one of the few sectors that is still talked about as a growth story in this economy.

Jeremy Glaser has a position in the following securities mentioned above: MSFT. Find out about Morningstar’s editorial policies.

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