What to Expect From Technology in 2009

The tech sector is a volatile one which means it has been a constant ride as of late. This is one that resembles the consumer discretionary when it comes to the economy. In an economic time like this, it is rare to see people spend extra money for newer technology. This creates a drop in sales and essentially earnings estimates. When researching these companies, growth remains most important as we see how each company tries to stay ahead of competition by staying innovative and seeing what the consumer wants.

Wireless technology is what's hot right now. The top companies in this sector will be the ones who come out with the most convenient technology to combine music, internet, phone, etc into a small handheld device. Apple(AAPL) has been dominant so far, but with Steve Jobs' health uncertain, how far will the stock hold up? Research in Motion(RIMM) has shown that it has potential to be a strong competitor in the future. It has begun to convert the conventional blackberry into a touch screen device. When talking about phones and all they can hold, lets look at carriers. AT&T(T) had a surge as it was the only carrier for the iPhone. Meanwhile, Verizon(VZ) made a deal with RIM. Verizon also just completed a takeover of Alltel. AT&T and Verizon are also leaders in broadband.

Moving to the more conventional computer industry, Microsoft(MSFT) is the premier company. Microsoft has no debt and is sitting on billions and billions of free cash. They can buy any company they want to expand into different areas. Microsoft's future rests solely on its ability to innovate and stay ahead of competitors as they have done. It is important not to overlook Hewlett Packard(HPQ) and IBM as they both lead their competitors in their own respective areas of business and personal computers. They have both shown they can each respond effectively to harsh economic times.

The internet remains a decent spot for growth. Google is always a good company. However, it must be noted that consistently high growth expectations will not last forever. Yahoo remains a strong takeover target and should be bought only for M&A speculation. Amazon is a leader is this category as well as retail as people have a need for discount items. This is a volatile and high P/E industry so manage your risk accordingly.

There are good companies that were not mentioned here. As always do your own homework and research before you just accept anyone's thoughts and ideas. This is a volatile sector in which you will have to manage some risks when it comes to new innovative ideas. Look for companies with low debt and promising ideas. Find the products that will set a trend.