Big tech stocks may face friction

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    NEW YORK- Some investors are betting the technology and communications stocks that drove a massive rebound in US markets this year will face a tougher slog in coming months, no matter whether Republican President Donald Trump or Democratic challenger Joe Biden wins Tuesday’s election.

    Betting against big technology has been a risky proposition over the last decade, as stocks like Amazon, Google and Netflix have shot higher at the expense of so-called value and cyclical stocks such as banks and energy companies.

    Recently, however, some fund managers say they are growing alarmed by what they see as a consensus in Washington to tighten regulations, and prospects that another large stimulus bill would bolster a rotation out of tech and into other sectors including economically sensitive value stocks.

    “There will be a shift and it is starting, but it will take time,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, which cut its exposure to large-cap tech in September to neutral from overweight.

    Should Biden win as polls suggest, technology companies could face higher tax rates and tax-motivated selling as well as increased regulation, investors said.