2007 Tech sector

maturing outlook tougher competition and lower entry barriers. Nowhere can this been seen than the rivalry between Intel and AMD on the semiconductor front and the battle between HP and Dell The earnings of IBM, apple, and Intel has posted disapointing news. nearly each major company in 2005 has embarked on cost cutting program with personnel reduction as a major objective. IBM will eliminate 14,500 at a cost of $1.7. Demand IT spending remains tepid. IDC predicts that global IT spending increas at a compound annual growth rate of 6% to $1.48 tril in 2010. US. spending will be below 6% as weakness in corporate profits impact IT budget, than lower than 2005 and 2006. Bonds Non investment grade underperformed overall non investment grade corporate universe. Individual bond's performance is volatile too. the whole sector will remain underperform. Event risk, like M&A will be high as the sector matures.