Stocks fell sharply beginning in late February, hitting their virus-driven bottom on March 23 and then mounting a swift rally on fiscal and monetary rescue efforts and hopes of a strong economic recovery. As of Wednesday's close, the S&P was nearly 40% higher than its intraday low on March 23.
El-Erian, former CEO of investment giant Pimco, said that when he begins to feel comfortable putting money to work, he will look to areas "under the umbrella." "There's two types of umbrellas out there. If you are comfortable with moral hazard, the umbrella support by the Fed, which involves high-quality bonds and certain high-yield bonds," he said. "If you're comfortable with a market-based umbrella, it is companies with very strong balance sheet and positive cash-flow generation. There's quite a few of them ... out there, and I suspect they will continue to do well, albeit in a very volatile fashion.
El-Erian said he believes the volatility will persist until the markets are able to find their next "anchor." Initially, that was the policy response from the Federal Reserve and Congress and then transitioned to the economic reopening, El-Erian said. From there, retail investors who moved into beaten-down stocks helped power the market higher, he contended.
"But retail flows no longer have the same influence. You can see from what's happened to the rotation trade. You can see this from what happened yesterday," he said,. "So the big question is, what is the next anchor for markets? And it's not clear to me where that's going to come from."
elerianm Wise investment. missing the small rallies that has high risk, waiting for the biggest rallies with low risk
elerianm How brave of you el cid.Why not donate your money that you're 'not putting it to work' to a worthy cause rather than your own pockets. You are obsolete.
elerianm gotta be listened
elerianm I’m so grateful to you innaprokhorova_ I never thought Earning cash could be this easy,I earned over $60k on my first 7days of trading
elerianm Urgently!!! Nobody expected this !!! (Video)
elerianm Ever pessimistic about market
elerianm Not even Berkshire ?
elerianm He keeps missing the rally , I thing he never invest in the market he just talk .
elerianm When US opened, people had an appetite to spend. Now there is a surge in COVID cases and spending is contracting, again. There is now political pressure to keep the economy open. If US economy struggles much longer than the world, what happens to US $ denominated assets?
short zoom the servers are in china, they have your face along with the financial data they been stealing for years. matching!! jimcramer promotes Communist Stock don't let it be a LUCKEN COFFEE
elerianm Somehow every day around 3am money is put to work in the futures, what's up with that, no one questions, why? ,who?, I guess if it was the opposite it would be talked about
elerianm It's going to come from FED probably
elerianm Vague as usual
elerianm A lot of people have been cautious and are thinking possibly that the rally over the last several weeks has been a bear market rally.
elerianm Prudent. Marathon runner vs sprinter.
elerianm econisfakenews dude are you half Ewok?
One of my favorite investment managers on CNBC. Managed Harvard fund. CEO of Allianz Obama appointment to Global Development. Generally has a smart different take on what’s happening in the markets.
He cashed out at the highest stock price. It means the immature bull investors were traped A signaling for big dumping.
He missed the last rally and he missed the big recovery after March dropped , i think he only just observe the market he never trade or he just trying to put the people off the market .
Who is he anyway?