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

Odaily Planet Daily News 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 following an increase in speculative positions in tech stocks.

Christian Mueller-Glissman said: "This has been a very strong rally that significantly drove these momentum stocks higher. Some consolidation might not be a bad thing."

After Broadcom released a disappointing earnings forecast, Mueller-Glissman warned against generalizing the performance of cyclical tech hardware and semiconductor industries. 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)