This week, markets sold-off when a combination of bullish rhetoric from US Federal Reserve Chairman, Jerome Powell, and corresponding gains in US Treasury yields (which hit seven-year highs) caused investors to question current stock market valuations-especially those in the tech sector.

As head of investments for Quilter Investors, Anthony Gillham, observes, “This feels a little like a re-run of February’s cold snap when stronger than expected US employment numbers sent an inflationary shiver through markets. This time around it’s the ‘risk premium’ that’s rising and this is making life hard for stocks with demanding valuations. As tech stocks have dominated US market returns over the last year, this will be an especially painful phase of passive investors.”