Saturday, March 7, 2009

Don't sell IBM

But some other folks are going to.

<---Six month chart of IBM and Hewlett Packard, both of which are relatively defensive technology stocks - places that investors hide if they want some tech exposure in case things go up.

Things haven't gone up. Seriously not up, and IBM has dramatically outperformed HP over the past month. While I am not 100% sure why people have sold HP before IBM, it probably relates to the fact that HP had been a margin turnaround story, and turnarounds are tougher sledding in a negative growth environment.

If we don't get an up market in the coming weeks, expect IBM to play some catch up on the downside.

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