Mohamed El-Erian is chief economic advisor at Allianz SE. Speaking of both stock and bond markets:
- “We need to get out of these distorted markets that have created a lot of damage,”
- El-Erian notes that when these market corrections happen simultaneously, investors should move to “risk-off” assets
- “What we have again learned since the middle of August, is that (stocks and bonds) can both go down at the same time,” he says. “In a world like that, you have to look at short-dated fixed income, and you have to look at cash as an alternative.”
He does favour cash, says stick it under the mattress (tongue in cheek, but not that far!).
