Tech Stocks: A Bubble Just Waiting to Burst?

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Nov. 4 (Bloomberg) -- JPMorgan's Anastasia Amoroso discusses the outlook for technology stocks with Adam Johnson and Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

What do you say?

In the short term, you have a lot of fluctuation.

It's very different from the materials sector.

Tech is truly one of those things that are at stake.

The drive toward instant access to information is not going away anytime soon.

We want global, virtual, and instant.

You look at some of the names out there and there are some that are looking at much loftier valuations than others.

How do you balance it out?

Facebook, amazon.

One thing to do is extend your time horizon.

Revenue and earnings may have some catching up to do.

Some of the media companies are perfect examples that if you would have waited perhaps a year or so, it eventually does catch up.

You have to let the companies grow into their earnings potential, and it does set -- does take some time.

How much resistance do you get to it valuations?

Next there's a good reason we pay high for tech because it does provide that longer-term growth potential.

There is a place for that in your portfolio.

Valuations from a 10-your perspective are not necessarily that expensive.

If you compare current p/e ratios to the 10-year p/e ratio, they are below average.

As they were starting to get cheap back in 2003 and 2004, they are still cheaper.

At has been a long time coming for tech.

I think we are finally getting to the point of take off for tech.

With all the cash on the sideline, there is room to grow.

The u.s. consumer will look at how much progress has been made from the u.s. consumer front.

The corporate and consumer sector will eventually be the driver.

Are there particular areas that you like especially in tech , because of facebook and twitter and excitement over the ipo's? think it's about three things.

It's about mobilization, and the huge growth in mobile devices.

That is not going away anytime soon, not just in the united states but outside the u.s. as well.

It is about the social aspect of it.

Last but not least, it is virtualization.

It is tremendous how that data we consume every day has grown just in the last two years and how much it will grow in the next five years.

We absolutely have to capitalize on such things.

You just told me to go by apple, all three reasons.

No wonder we talk about it so much.

If that's your choice.

Do you use an apple iphone?

I do.

We have three apple iphone users.

I still have a blackberry and an iphone.

This text has been automatically generated. It may not be 100% accurate.

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