Perfect timing from PIMCO co-head El-Erian who hits the wires as stocks near unchanged on the day.

  • Says the Fed is the stock market’s “best friend”
  • The Fed can’t “exit this regime for a very long time”
  • He also calls Japanese monetary policy a “major U-turn”

A trade that will work for the remainder of the year will be fading any moves based on the idea the Fed is going to hike rates or taper easing. It won’t happen until unemployment is below 7%.