Svmuu reports that Christian Mueller-Glissman, head of asset allocation research at Goldman Sachs, stated that the recent sell-off in the technology sector is a healthy signal following an increase in speculative positions in tech stocks.
Christian Mueller-Glissman said: "This was a very strong upward rally that significantly pushed these momentum stocks higher. A bit of consolidation might not be a bad thing."
After Broadcom released a disappointing earnings outlook, 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 so far this year. (CNBC)