The head of asset allocation research at Goldman Sachs believes that the recent decline in technology stocks is a healthy correction.

The head of asset allocation research at Goldman Sachs Group stated that the recent selling in the technology sector, after a speculative increase in positions, is a healthy signal. "This has been a very strong rally, greatly pushing up these momentum stocks," Christian Mueller-Glissman said, referring to leverage ETFs and increased options positions. "Some consolidation may not be a bad thing." After Broadcom released disappointing earnings outlook, Mueller-Glissman warned against generalizing the performance of the highly cyclical technology hardware and semiconductor industries. In his view, the biggest threat to the stock market would be if investors start to question the strong profit growth that has been driving the market higher so far this year.