Tech stocks to end year down for first time since 1984

NEWS Without a sharp turn in fortunes, year-end tech-oriented mutual funds look set to be in the red on the year for the first time since 1984. The Nasdaq composite index is running about 33 per cent below its January 1 2000 level, against an average gain for technology mutuals last year of 135 per cent. Few top US performers have managed double-digit growth this year, while at the bottom end many have seen their values more than halve. However, the damage to most investors will be limited as tech stocks usually form only a small percentage of mutual funds. Brokers insist that investors should be encouraged to take a long-term view. As tech stock prices have collapsed, investors have been inclined to sell lower performing funds and buy into the better performers, further exaggerating the gap. By Geoffrey Davies