As Recession Looms, What to Expect from Tech

Does anyone else feel like the economy is acting a little like the Wicked Witch of the West? “Just try and stay out of my way. Just try! I'll get you, my pretty and your little dog too!” What gives? Not the recession apparently.

 

On Oct. 29, 1929, the New York Stock Exchange closed down 12.8 percent, marking the end of the Bull Market of the 1920s and the beginning of the Great Depression. To quote Jim Goldman from CNBC.com, “It's hard to focus on the likes of Google (News - Alert), Apple, and other tech all-stars with solid fundamentals, when every ‘expert’ is screaming that a storm is coming, and the time has come to weatherproof your portfolio.”

 

But haven’t we seen all this before? Some bloggers are having a little déjà vu like George F. Colony, who stated in his blog today that people in the tech industry shouldn’t have anything to fret over. Why? Because:

1)      Tech will be down, but not out

2)      Transformation and innovation will lead recovery

3)      Tech is everywhere

4)      Customers live on tech and

5)      Tech issues are burning

 

Goldman claims, “If recession is cancerous to the body economique, than the dot com bust was a melanoma—localized with the potential of becoming something far worse. What we're seeing now is almost like a leukemia—systemic, bad, with a scary prognosis because we didn't catch it before it metastasized. But not necessarily for tech.”

 

This lively metaphor may possible be true. People today cannot live without their smartphones, cell phones, PCs, laptops, PSPs, what have you and therefore it can be concluded that these markets will continue to be stimulated.

 

Although the tech industry is predicting a slight adjustment within the industry, what techies are telling each other is that this too shall pass.