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Tickers in this Article: MSFT, AAPL, QCOM, GOOG, QQQQ
One minute the demand for energy in emerging markets like China and rampant speculation in the futures market pushes oil above $145 per barrel, then you blink and oil prices have dropped below $120 per barrel and the S&P 500 begins to show signs of a recovery. Instead of trying to guess the direction of markets, investors can put their emotions aside and focus on lagging asset classes that are becoming beneficiaries of new money inflows.

According to The Wall Street Journal, the PowerShares QQQQ Trust (Nasdaq:QQQQ) was one of the top recipients of new investment from institutional investors this week. A review of its top three holdings in the QQQQ Trust makes the case for not ignoring technology. (To learn why coattailing the smart money can pay off, read Keeping An Eye On The Activities Of Insiders And Institutions.)

Top Three QQQQ Holdings: Tried and True Familiar Names

iExcitement
Apple's
(Nasdaq:AAPL) products simply amaze and dazzle us. The launch of Apple's new iPhone 3G promises users an even faster and richer multi-touch, multi-application, multi-use experience. Its new ultra-thin MacBook Air and its existing iPod+iTunes combination are likely to be on the top of many back to school shopping lists if young adults don't already own them. Apple's ability to redefine mobile devices, computing and music access make it a well rounded option as the foundation of a diversified technology portfolio.

Tech Veteran
Microsoft
(Nasdaq:MSFT) may be playing catch up to internet search king Google (Nasdaq:GOOG) and locking horns with Apple over PC and media device dominance, but the Redmond, Washington based software provider is still heavily entrenched in the minds of customers as an innovator. Microsoft's Zune player, its Xbox 360, its Vista operating system and its intention to broadcast more than 3,500 hours of live and on-demand video of the 2008 Olympics are clear examples of the companies' ability to break into new arenas and create demand. (To learn more about demand and prices, check out Economics Basics.)

Wireless Guru
Qualcomm
(Nasdaq:QCOM) has been the best performer among the group mentioned here rising nearly 45% over the past 12 months. Qualcomm's push into 3G and eventually 4G technology is capturing the imagination of its end users and investors. 3G technology enables a wider use of wireless devices to send and receive video calls and other broadband wireless data more efficiently. Qualcomm is setting the trend as a market leader in the licensing of its chipsets to original equipment manufactures and breaking new ground by developing innovative solutions to monitor the health of individuals who are on the go.

Final Thoughts
Commodities work well as a hedge against inflation, but so does a well diversified portfolio that includes exposure to asset classes that are currently out of the spotlight. When faced with uncertainty, remember that chasing today's winners can lead to a bitter future. While technology has cooled, a dollar cost averaging approach into a technology investment maybe the best method to keep balance in the face of volatility.

To create your own dollar cost averaging strategy, check out DCA: It Gets You In At The Bottom.

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