STOCKS | Goldman Sachs’ Mueller-Glissman Calls Recent Tech Stock Sell-Off a Healthy Signal

Goldman Sachs Group asset allocation research head Christian Mueller-Glissman said the recent sell-off in technology stocks is a healthy signal after speculative positioning in the sector increased. According to Odaily, Mueller-Glissman said the sector had seen a very strong rally that pushed momentum stocks higher, and that some consolidation may not be a negative development. After Broadcom issued a disappointing earnings outlook, he cautioned against generalizing performance across highly cyclical areas such as technology hardware and semiconductors. Mueller-Glissman said the biggest threat to equities would be if investors begin to question the strong earnings growth that has driven the market’s gains so far this year.