Tech Stocks: A Summer of Love

New productsplus buybacks, dividends, and enticing valuationslure investors into technology names

Technology stocks are enjoying an uncommon summer of love, as investors have been shifting money away from financial companies in light of the subprime and credit market troubles. "This year, tech stocks are outperforming pretty notably," says Scott Kessler, head of the technology group at Standard & Poor's Equity Research. "Actually, tech stocks were outperforming before the housing and credit issues came to the fore."

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