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

Odaily reported that Christian Mueller-Glissman, head of asset allocation research at Goldman Sachs, stated that the recent sell-off in the tech sector is a healthy signal after speculative positions in tech stocks increased.

Christian Mueller-Glissman said: “This has been a very strong upward trend that has significantly driven these momentum stocks higher. Some consolidation might not be a bad thing.”

After Broadcom released disappointing earnings guidance, Mueller-Glissman warned against generalizing the performance of the 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 so far this year. (CNBC)