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So, I think technology is a great place to be, I'm wondering whether technology might actually be at 40% when you consider all the things that aren't consumer durables [00:25:30] that are embedded in capital spending that aren't necessarily included in the S&P 500 technology sector, and by the way in 1999, the tech sector at its peak accounted for something like 18% of the earning share of the S&P 500, and almost two, three times that in terms of market cap share, so it was insane. Here, well [00:26:00] I think we got the 25% earning share, and I think we're still there, and yet the market cap share which got the 28% is probably back down to 25 or 24%, did I get that basically right?
Thomas Lee: Yeah.
Ed Yardeni: So it's not a crazy expensive sector, and I completely agree with labor shortages everybody's paranoid that it's gonna lead to higher wages, which there's nothing wrong with that if it's based on productivity, and I think it is going to be based on productivity. If you can't find workers, do you [00:26:30] really want to bid up ... Thanks for that, is that gin? After this week we need something like that. If you can't find workers, everybody knows you can't find workers, by the way, all the talk about can't find workers and yet every month we come up with 200,000 people, you know, are these all people who got off of opioids or are they all, you know, with the earrings in their noses, [00:27:00] are we really down to that or?
Thomas Lee: Those are Millennials by the way.
Ed Yardeni: Well, let me tell you, I run into a lot of Millennials, I wish I knew what I knew now, I've had five kids, so I mean I had a happy childhood, and had five kids, I married three times, so I'm an optimist. I tell Millennials, I said, "Whatever you do, don't get married, don't have kids okay?" I mean kids are annoying ...
Robert Powell: They're expensive.
Ed Yardeni: ... they're [00:27:30] expensive, my first three kids were really cheap, the last two it's like shoot me now with what college costs, you know, I do all right but it's insane. So, I don't know if the Millennials are gonna, first of all they're stuck with student debt, a lot of them, you know, go talk to a Millennial, ask him, "Do you know what a AVP is, A SVP, and EVP?" I missed the VP along the way, he said, " [00:28:00] Are those like new cars or some tech thing?" It's like, "No, that's the way boomers used to think." It's like I go to work for one company the rest of my life, I'll be an AVP after a while, then a VP, and SVP, and an EVP.
In other words, that was progression. I've got a Millennial consultant who does my IT, and then August he told me, "You know, if you don't mind I'd like to take uh, six weeks off and go to India, I've never been overseas." And so [00:28:30] in the old days, I'm his boss I would say, "If you don't come back in a week, you're fired I'll find somebody else." You know what I told him? I said, "Make sure you get your shots." You just kind of learn to live with, I mean he's a really smart guy. In the stock market, I think technology makes sense, I think I would stay with the US, a lot of US companies invest globally for you as it is, I think emerging markets they make you money and then they give it all back, and if you want to be emerging markets, [00:29:00] be in the ones that are doing business on a bilateral basis of done deals with the US, Mexico clearly is one of them, I think you'll see a lot of the Asian emerging markets, you're gonna say, "This is an opportunity to s- just see all the stuff moving out of China to Vietnam and places like that."

The tech sector is a huge investing spot for investors. 

The overall market volatility may be scary, especially since it's earnings season, but investors shouldn't be scared away from the whole sector.

Jim Cramer, whose Action Alerts Plus members club is invested heavily in tech, has come out in support of the sector. 

Here are top takeaways that experts at the Trading Strategies panel hosted by Charles Schwab. 

Tech Is the Place to Be

"I think technology is a great place to be, I'm wondering whether technology might actually be at 40% when you consider all the things that aren't consumer durables that are embedded in capital spending that aren't necessarily included in the S&P 500 technology sector, and by the way in 1999, the tech sector at its peak accounted for something like 18% of the earning share of the S&P 500, and almost two, three times that in terms of market cap share, so it was insane," said Ed Yardeni, president of Yardeni Research. "Here, well I think we got the 25% earning share, and I think we're still there, and yet the market cap share which got the 28% is probably back down to 25 or 24%..."

It's Not a 'Crazy' Expensive' Sector

Yardeni also likes the price tag of tech. 

"So it's not a crazy expensive sector, and I completely agree with labor shortages everybody's paranoid that it's gonna lead to higher wages," said Yardeni. "Which there's nothing wrong with that if it's based on productivity, and I think it is going to be based on productivity. If you can't find workers, do you really want to bid up."