Investment Opportunities When the Market Crashes

Well, here we are in the middle of earnings season and things don’t look that bad. There’s been some disappointments, but there always are. On balance, I think it’s fair to say that corporate earnings remain robust.

If its one market sector that I’ve been impressed with it’s the technology sector. This includes telecommunications companies. Now, companies like Intel and Microsoft aren’t doing much, but these aren’t the benchmark companies anymore.

Previously, I wrote about Motorola’s solid financial results. I’m really impressed with that company.

What I’m seeing in the stock market right now is successful earnings growth from both large- and small-cap technology companies. This means that the health of the entire sector is much improved from just a few years ago. I’d be a buyer of pure play technology stocks right now.

I mentioned telecommunications stocks, which I do consider to be under the umbrella of the technology sector as a whole. It’s great how the free market economy rights itself after a disaster. Telecom companies were buying other telecom companies at inflated prices during the Internet boom up to 2000. Then they crashed big-time along with the entire technology sector.

But out of the ashes of the telecommunications industry came Voice-over-Internet-protocol (VoIP) technology and the industry revitalized itself once again.

In the telecom market now, I wouldn’t consider an investment in a company that didn’t have some sort of VoIP business strategy. I use VoIP to make long distance telephone calls and the technology works great.

One lesson we can all learn is that there are always great investment opportunities when a market sector crashes. It takes courage to step up to the plate and buy a stock when its down, but more times than not, this really is the best time to be taking on a new position.