European Tech Stocks Appear Poised for Gains
LONDON -- If you're a bungee-jumping type of investor it could be the right time to consider buying a European technology fund.</br></br>European technology stocks suffered another terrible year in 2002, turning in one of the worst performances in the region as they tumbled more than 50%. Yet as in the U.S., European technology, media and telecommunications shares enjoyed an impressive comeback in the fourth quarter as investors sought out good bargains among the rubble.</br></br>Even with those gains, some analysts argue that a number of tech stocks are poised to climb higher and that investors should consider at least some exposure to the sector. They also note that Europe is home to some of the world's technology leaders, from Finnish telecom equipment maker Nokia to Dutch electronics manufacturer Philips.</br></br>"For a diversified portfolio one should consider looking at tech funds again," says Anthony Yadgaroff, group-managing director at independent investment adviser Allenbridge Group in London, who personally bought a small position in a tech fund a few weeks ago.</br></br>Mr. Yadgaroff does warn that any tech position should be small in an overall portfolio. "Tech holdings should never be more than 5% of a portfolio," he says.