Goldman Sachs Head of Asset Allocation Research believes the recent tech stock decline is a healthy correction

Glonghui June 5th｜Goldman Sachs Head of Asset Allocation Research said that after an increase in speculative positions in technology stocks, the recent sell-off in this sector is a healthy sign. "This has been a very strong rally, which has significantly boosted these momentum stocks," said Christian Mueller-Glissman, referring to increased leverage ETF and options positions. "Some consolidation may not be a bad thing." After Broadcom released a disappointing performance outlook, Mueller-Glissman warned against generalizing the performance of the highly cyclical technology hardware and semiconductor industries. In his view, if investors begin to question the strong earnings growth that has driven the market higher so far this year, it will be the biggest threat facing the stock market.