Bank Of America: Tech Will Lead The Charge In 2015

Investors can look for more of the same in 2015 according to a recent Bank of America report. The technology sector has outperformed in 2014, and analysts predict that technology will once again be the place to be in 2015.
US Equity Strategist Savita Subramanian argues that tech balance sheets are the healthiest of any sector, as technology is the only sector at the moment with more cash than debt. In addition, technology receives a disproportionately high percent of investment capital in times of global spending growth.

Finally, from a valuation perspective, the technology sector is still widely discounted compared to its historical averages.
One area that analysts mention as an area of opportunity is social media. According to the report, the number of social media users could be upwards of 1.5 billion by 2016. And perhaps more importantly, 92 percent of business users credit social media as an important part of their operation.
The report specifically mentions Facebook Inc FB, Twitter, Inc TWTR and LinkedIn Corp LNKD as newly-public social media companies that will all continue to play a major role in the future of the space. Facebook stock is up over 30 percent so far in 2014, while LinkedIn is down 3.6 percent and Twitter stock has dropped 44 percent year-to-date.

Bank of America also sees tech opportunities in the following areas: cloud computing, big data, the Internet of Things, wearable technology, cyber security, 3-D printing, social media, and mobility.