The technology sector covers the market like a hardwired spider web. It's in medicine as biotechnology, in telecommunications, cable, contract manufacturers, tech retail, software, storage, wireless, and - of course - computer software and hardware. Actually, it's hard to avoid technology in any sector or subsector, because technology quickly became the pot of gold at the end of the rainbow just a little over a decade ago. Although the rainbow dimmed a bit over the past two years, technology still survives. It's permeated our lives.

Cora and I discovered several key points about the most common use of technology this week. Let's begin with home- and business-based hardware components:

1. Like automobiles, computer hardware (the body) is built to last at least for about a decade or more, if we take care of the machine. Keyboards and mouse equipment suffer wear and tear, but these replacements are just like replacing worn out parts on a car.
2. Computer components and circuit boards are also like car components. If the car battery dies, we buy a new one. If the hard drive dies, we buy a new one.
3. Computer Monitors are just like televisions, and they run on the same concept. Both televisions and computer monitors blow occasionally, and we need to replace them.
4. The comparison here is on both cars AND televisions - new models arrive every year, and it's our choice (or choice of occupation) whether to replace ol' faithful or keep on cruising the Internet with what we have.

This means we might treat computer hardware like durable consumer goods when it comes to portfolio diversification. Even new computer equipment and peripherals (scanners, printers, modems, external CD drives, etc.) would fall under this category, since they're built to last at least a few years.

Computer software is another story. Since my occupation depends on the use of several graphic software packages, I have experience with this subsector. The timeline for upgrades or new versions of graphic software programs is geared for 18 months. Every year and a half, digital and print designers are needled into new learning curves with their software programs. Although the newer software is often compatible with the older software, designers are often expected to know and own the latest version. However, these events produce minor spikes in tech charts. Once the software is bought, another 18 months glides by without much ado.

Graphic designers aren't the only ones subject to software "innovation." A little research showed that software seems to show a new face every 18 months across the board. We might consider software to be non-durable consumer goods.

IT, or Information Technology, breaks down further into service, sales, and delivery. The newest components to IT are online learning and cybersecurity. The latter will be interesting to watch, as our Homeland Security service was established on a "no cost" nature. However, it will be impossible to integrate information without technology. Technology isn't free. Homeland Security is government-based, but look for public security service businesses to be part of this trend, also.

The online education prospect is expanding. Cora uses computers at school, and they often learn through public education programs online. Going further, I plan to complete several college classes online. In my search for online graduate-level programs over the past year, I encountered higher levels of creditable courses from reliable institutions. This form of learning is so new that most available courses mainly featured Master's program in online learning. Within the past year, some of these graduates obtained jobs at more established brick-and-mortar colleges. Now, with the expertise of online education experts, we can find online graduate degree programs and courses in just about everything from anthropology to zoology. Of course, online IT degrees and certification are the easiest to obtain, but the future is wide open for other courses of study, and they all offer the comfort, convenience, and financial advantage of learning from home or work.

In our search for information about this sector, Cora and I found the Information Technology Association of America (ITAA) web site. ITAA is based in Arlington, VA, and the site provides current news and perspectives on the IT industry. Here, we found all the information we could handle on various IT subsectors. This site is a gem, because they don't tout any one product or service. They sport editorial and opinion, but they offer facts, news and trend information, too.

Issues in this sector are important to watch, since none of them have been fully resolved. These issues include groups for and against government regulation; accessibility issues for physically disabled individuals, and issues surrounding copyright, or intellectual property, and taxation. Full resolution of any one of these issues could cause major changes in how tech companies operate, and in how we use technology in the public and private sectors.

We're all fairly familiar with public use of technology. Cora and I were fascinated with material we found on innovative use of technology in mapmaking, medicine, and other scientific endeavors. Of course, that shouldn't surprise us, since IT is a science in itself. One compelling trend is the combination of traditional science, technology, and art. Of course, this combo wouldn't top the charts for market profitability, but the results offer a new avenue for revenue for artists.

After you read this article, stop and take a look around you. Imagine what your world would be like without technology. We wouldn't have cellphones, or television additions like personal video recorders or DVDs. We wouldn't have CD players, portable radios, or hand-held, laptop, or desktop computers. We'd have to play solitaire with real cards, get out of our easy chairs to change channels, and cook our meals in traditional ovens. We wouldn't have IT, and many of us wouldn't have jobs.

The choice isn't about whether we should include the technology sector in our portfolios. If we look closely, IT's already there.

Until Next Week,
Linda Goin