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

Odaily News Goldman Sachs Asset Allocation Research Head Christian Mueller-Glissman stated that the recent sell-off in tech stocks is a healthy signal following an increase in speculative positions.

Christian Mueller-Glissman commented: "This has been a very strong rally 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 highly cyclical tech hardware and semiconductor companies. 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 year-to-date. (CNBC)