Some financial advisers are urging their clients to step back a minute before investing too quickly into science and technology funds.
Those tech funds have pushed the NASDAQ composite Index to record levels during the first two months of 1998, rising more than 13 percent compared with the Standard & Poor's 500 Index, which is up about 8 percent.
But some managers expect the sector to experience continued turbulence this year with potential for the stock market to cool as the U.S. market is influenced by the economic turmoil in Asia. "I'm wary of the recent run up," Paul Meeks, director of technology research for Jurika & Voyles Inc. in Oakland, Calif., told The Wall Street Journal.
David Yeske, a certified financial planner in San Francisco, says that while technology is going to continue to grow, "not every good company makes a good investment." And although the sector is less likely than the overall market to cool off, Chip Morris, portfolio manager of the T. Rowe Price Science & Tech Fund, says a lot will depend on the broader market. If interest rates stay low, the market and tech stocks should continue upwards, Morris says.
