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Some investors avoid
the technology industry

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because they say it's
impenetrable or irrational.

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But it's clear technology offers
huge investment opportunities,

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it's the market's
largest segment.

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Tech companies are known for
innovation and invention,

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invest heavily in
research and development.

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Rampant competition
creates a steady stream

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of new and improved
products while it quickly

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renders others obsolete.

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Technology has
four mega sectors.

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The first is semiconductors,
also known as chips.

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Semiconductors underlie
everything in technology.

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It's a big industry on
its own, but the number

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of physical products that rely
on semiconductors is vast.

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Second is software.

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All computers require the
proper software to function.

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Networking and
internet are third.

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The internet, one
giant network, has

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led to new business models and
major changes within commerce.

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Finally, there's
hardware, this includes

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communications equipment,
computers, and peripherals,

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networking equipment,
technical instruments,

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and consumer electronics.

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Investors should tech stocks
usually have higher premiums.

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Their values come
from the high growth

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rates successful
companies usually enjoy.

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But remember, even
unsuccessful companies

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can carry robust valuations
right up until they crash.

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Investors should also know
that understanding a tech

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company's products and its
rivals products provides

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an advantage over
those who don't.

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Investors who avoid the tech
industry limit their choices

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and may miss
opportunities that lie

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within one of the most dynamic
drivers of modern economies.

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