It's Too Early for a Tech-Stock Rally

Chances are good that Wall Street's optimism in bidding up share prices is way ahead of reality

With the Nasdaq up nearly 10% since the end of February, you'd think technology investors would be celebrating. But plenty of party poopers are out there. Merrill Lynch chief U.S. stock strategist Richard Bernstein recently recommended that investors focus on utilities, consumer products, health care, and defense -- anything but tech stocks. His worry, which investors might be wise to heed, is that the recent rebound in tech stocks has been premature.

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