Goldman Sachs: Recent Decline in US Tech Stocks Is a Healthy Correction

Odaily Planet Daily News According to Christian Mueller-Glissman, Head of Asset Allocation Research at Goldman Sachs, the recent sell-off in the tech sector is a healthy signal following an increase in speculative positioning in tech stocks.

Christian Mueller-Glissman stated: "This was a very strong rally that significantly propelled these momentum stocks higher. A bit of consolidation might not be a bad thing."

Following Broadcom's release of disappointing earnings guidance, Mueller-Glissman warned against generalizing the performance of highly cyclical tech hardware and semiconductor sectors. In his view, the biggest threat to the stock market would be if investors begin to question the strong earnings growth that has driven the market higher this year. (CNBC)