Allianz’s El-Erian Discusses Brexit

According to Mohamed El-Erian, chief economic adviser at Allianz, there is a common thread running through Brexit, claims of inconsistency in the Fed’s actions, the rise of negative interest rates and ‘strange politics”. Investment News reports that, in a recent media briefing, he described the commonality as “advanced economies’ inability to grow in an inclusive […]

El-Erian: Expect Major Volatility – and Big Opportunities

Mohamed El-Erian, says to expect major volatility in the coming months — volatility that will create some great opportunities. “We have a bumpy road ahead of us, but I keep on stressing, it will create a lot of attractive opportunities,” he told CNBC. El-Erian said the global market may experiencing a shift to a “higher […]

El-Erian: U.S. Improving, But “Not At Escape Velocity”

PIMCO’s Mohamed El-Erian says the U.S. economy is improving, but still has big issues to deal with. “We continue to heal … but we’re not at escape velocity,” El-Erian tells CNBC. He says that while improvement can be seen in areas like housing, the U.S. hasn’t gotten over “the three big issues”: not enough aggregate […]

El-Erian On How Japan Impacts The Bond Market

PIMCO’s Mohamed El-Erian says what’s happening in Japan is key to what will happen with the bond market in the U.S. El-Erian tells CNBC that the latest stage of the stock market rally seems to have been driven by Japan’s big stimulus efforts, and by the notion in general that central banks around the globe […]

El-Erian: Markets Front-Running BOJ

PIMCO’s Mohamed El-Erian says that all assets are trading at “very artificial” levels due to central bank policies. El-Erian tells Yahoo! Finance’s Daily Ticker that central banks’ flooding of the markets with liquidity is the reason why stocks are up significantly this year while Treasury rates have actually fallen. He says that the U.S. economy […]

El-Erian: Fed Using Cyclical Medicine To Treat Structural Problem

PIMCO’s Mohamed El-Erian says central banks are continuing down a path that has an incredibly bifurcated set of outcomes. “Rather than step back and ask why (the measures have not succeeded), they just go deeper and deeper,” El-Erian tells CNBC of the loose money policies central banks around the globe are using. “The question is, […]

El-Erian: Time To Scale Back Risk

PIMCO’s Mohamed El-Erian says it’s time to gradually take money off the table because asset prices have gotten ahead of fundamentals. “We think that prices are artificially high, that maintaining them here is going to be hard as central banks become less effective, and that it’s time to book some profits and to wait for […]

El-Erian: End May Be Near For “New Normal”

When the financial crisis of 2008-09 hit, bond giant PIMCO was quick to say that the U.S. had entered a “New Normal” of slow growth, high unemployment, and debt woes. Now, PIMCO’s Mohamed El-Erian says that we may be nearing the end of the “New Normal”. “We said in 2009: three to five years,” El-Erian tells […]

El-Erian on Recession Odds

PIMCO’s Mohamed El-Erian says that if the U.S. avoids the “fiscal cliff”, he and PIMCO don’t think the U.S. will enter recession in 2013. El-Erian tells Bloomberg that he thinks we’ll continue to see sluggish growth in the 1.5% to 2% range as the economy continues to heal. “The big question for us is how […]

El-Erian On How To Handle The Fiscal Trouble

PIMCO’s Mohamed El-Erian says policymakers trying to address the country’s fiscal problems should focus on getting businesses and individuals to put the “ton” of cash now sitting on the sidelines to use, both via investment markets and capital spending. “If you make that your objective, you’re going to move not only just on fiscal reform but […]

El-Erian on Sandy’s Economic Impact

Just what impact will Hurricane Sandy end up having on the economy? PIMCO’s Mohamed El-Erian recently tackled that question in a piece for One of El-Erian’s key points was that the government likely won’t be able to play its usual role in the recovery, with more being required of the private sector. “In more […]

El-Erian: ‘Central Bank Put’ Won’t Last Forever

PIMCO’s Mohamed El-Erian says global central bank policies have inflated asset values beyond what fundamentals merit, and says that won’t last forever. “That central banks are essentially ‘all in’ is, in the short term, good news for all types of markets,” El-Erian writes in a piece for “Yet … investors should not get too carried […]

El-Erian: Risk/Reward of QE3 Getting “Less Favorable”

PIMCO’s Mohamed El-Erian says the Federal Reserve shouldn’t do anything that would disturb the bottoming of the housing market, and says the risk/reward outlook of another round of quantitative easing is getting “less favorable”. El-Erian tells Bloomberg’s “In The Loop” that he thinks the housing market is finally bottoming, though it is a prolonged bottom. […]

El-Erian: One-in-Three Chance of Global Recession

PIMCO’s Mohamed El-Erian says there is about a one-in-three chance that the global economy enters recession by the end of the year. “Every data point that comes out tends to confirm the synchronized slowdown,” El-Erian tells Bloomberg TV. “Wherever you look, this is a sluggish global economy.” He says that sluggishness makes the global economy […]

El-Erian: Be Cautious Amid Global Slowdown

PIMCO’s Mohamed El-Erian says the recent U.S. jobs report is very worrisome. El-Erian tells PIMCO that it’s part of a trend in which “every major part of the global economy is slowing, and slowing rapidly”. He says that a series of good data will be needed for the economy to achieve “escape velocity”. El-Erian also […]

El-Erian: Macro Headwinds Battling Micro Strength

PIMCO’s Mohamed El-Erian says that the U.S. economy is having trouble gaining traction, as evidenced by the latest GDP report. El-Erian tells Bloomberg that in addition to the headline growth number being lower expected, the drivers behind that growth were cause for concern. Consumer spending increased, he noted, but the personal savings rate declined, and […]