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Tougher times may lie ahead for the IT sector

Equities have had a tough time over the past month, with the information technology (IT) sector in the US hit particularly hard since mid-March. The poor performance of the IT sector cannot be pinned on its valuation, which does not appear to be outlandishly high. Rather it seems to have been mainly due to worries about greater regulatory scrutiny and the sector’s vulnerability to protectionism.

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