Technology's 'Hype Cycle' = Expectational Analysis for New Technology?

Tags: GOOG
19 Aug 3:14am
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When you are immersed in the Expectational Analysis (EA) methodology day in and day out, it is easy to develop tunnel vision and apply this concept to stocks and options exclusively. Today, however, a blog posting over at TechCrunch reminded me that you can actually apply EA to more than just trading. (Okay, I would use this for trading in technology stocks, but not in the usual direct manner.)

Specifically, TechCrunch highlights Gartner's "Hype Cycle" as it applies to new technologies. The blog post notes that cloud computing, microblogging, and 3-D printing are near the "peak of inflated expectations." For microblogging, think Twitter, and if you haven't heard of "cloud computing" yet, you need to pay more attention to Google (GOOG), Amazon.com (AMZN), and Yahoo! (YHOO).

Meanwhile, there are some technologies that are rebounding from the initial beat-down of high expectations, and may be finally emerging into their own right. Of these, Crunch highlights Tablet PCs and location-aware applications. We can thank the iPhone for the latter of these, though I think it could have some bearing on making tablets popular with its touch screen, as well .


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SchaeffersResearch

Schaeffer’s Investment Research, founded by Bernie Schaeffer in 1981, is a research-driven provider of investment research and recommendations featuring a unique, time-tested analysis of investor expectations. Schaeffer's contrarian approach, called Expectational Analysis®, focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription publication and it's website, www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's.