If you made the "Big Cheap Tech" trade, congratulations. It just hit an all-time high.
Longtime readers will recognize the "Big Cheap Tech" idea...
For years, America's leaders in tech-related industries – like software, Internet infrastructure, and semiconductors – have been trading much cheaper than the average stock.
With piles of cash, their dominant positions in vital, growing industries, and in many cases above-average dividends, these stocks have offered traders some of the safest, easiest money in the market.
If you've followed our advice to invest in this trend, you've made big money. And the trade could run much higher from here...
Last year, my colleague Brian Hunt and I suggested buying shares of the ProShares Ultra Technology Fund (ROM). (NYSE: ROM, Stock Forum) is an exchange-traded fund designed to return double the performance of the Dow Jones U.S. Tech Index. (For every 1% the index rises, ROM rises 2%.) In other words, it's a "one click," leveraged way to buy Big Cheap Tech. It has big stakes in Apple, Microsoft, Google, IBM, and Intel.
ROM is up more than 90% in a little over a year. And last week, it hit a new all-time high.
The market is catching on to the Big Cheap Tech idea. Money is flowing in. The sector is in a huge uptrend... And many of these stocks are still good deals.
After you account for the cash on their balance sheets, ROM's top eight holdings are trading at just 11 times forward earnings. That's a good price for great companies.
And it hasn't gone unnoticed. As I explained in May, many of world's best traders and investors are also big fans of Big Cheap Tech.
Take a look some of the top market gurus who own positions in Romba's top holdings:
While you may not recognize all of these gurus' names, I can assure you they all have decades of experience, huge research budgets, and the best contacts. So "looking over their shoulders" is a great way to find investment ideas.
As you can see, the trend is in Big Cheap Tech's favor. These stocks are still cheap. And the big money is buying.
If you're in the trade, hang on. These stocks have a long way to go before they get expensive. The gurus are expecting even higher prices. And so am I.