View more on these topics

Chips are down as Intel tumbles

US unit trusts were left reeling last week as two of the most popular

hardware technology stocks took a tumble.

Cisco Systems&#39 share price fell by 7 per cent on Wednesday while Intel

fell by almost 10 per cent after recalling one million faulty motherboards.

The falls highlighted the volatility across the US tech market and came as

a shockto many of the biggest US funds which have stuck by hardware tech

stocks despite last month&#39s crash.

Concept stocks have been hit hardest in the past month but last week

illustrated that the entire sector is still vola-tile in the short run.

Scottish Equitable&#39s AAA-rated American fund has a 5.5 per cent holding in

Cisco, and 4.6 per cent in Intel.

ScotEq technology fund co-manager Stuart O&#39Gorman, co-fund manager says:

“The volatility still worries me but we invest for the long termand the

long-term technology prospects are still lookingvery good.”

IFA Plan Invest director Michael Owen says: “We may see a few more months

of volatility in the tech sector but we would advise people to bide their

time. In the long run, things should be okay.”

Recommended

IFAs may be casualties in endowment price war

CGU&#39s move to slash commission on its mortgage endowment by over 50 percent has sparked fears among IFAs that other insurers will follow suit.Commission rates for CGU&#39s Homemaker Plus pro-duct are being cut from62.25 per cent of Lautro rates to 29.15 per cent.The industry is waiting to see the effect that the reduction will have […]

Investment View

I am not much of a football fan but last week definitely looked like agame of two halves. A lacklustre opening for the week turned into quitespring-like behaviour as technology issues shrugged off the gloom that hassurrounded them recently. I admit to becoming a little nervous over theprospects for our own technology conference due in […]

No quick solution to recurring PI poser

IFAs waiting for a new Aifa initiative to take the sting out ofprofessional indemnity insurance are in for a long wait as it could takeyearsto bear fruit.It may even prove ineffectual – unless the pitfalls of past projects areavoided – as more and more products come up for review, keeping the cost ofPI high.The pension […]

Don&#39t get caught in the web

This year will see ever more IFAs and financial services businessescreating websites and that is a good thing. But they will also be venturinginto a world of security risks, data protection responsibility, copyrightand intellectual property issues, with risks of seeing their own materialstolen or misused or of inadvertently misusing somebody else&#39s material.Even reproducing an article […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment