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 […]