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Fidelity: Software Stocks to Benefit From Tax Cuts

With many observers predicting that the economy is at the late stage of its cycle, some industries tend to perform better than others under these conditions. One such group, according to Fidelity Investments, is software stocks.

After all, thanks to tax cuts signed into law at the end of last year, companies have extra cash in their coffers and can use it to purchase or upgrade software. “Software tends to benefit from late-cycle economic strength, and I see the industry as a potential beneficiary of tax reform,” said Charlie Chai, manager of the Fidelity Select Technology Portfolio, in a research note.

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