Al-Marsad newspaper: The economist and chief economic advisor at Allianz, Dr. Mohamed El-Erian, said that the stock and bond markets appear distorted, and that US stocks are under pressure as bond yields rise in an unregulated manner.
Al-Erian advised investors to keep their cash and short-term and fixed-income assets, during statements to CNBC.
El-Erian stressed that there is a need to get out of these distorted markets that have caused a lot of damage, saying during a forum in Italy: We are on our way to re-pricing assets, explaining that investors need to focus on assets that are far from risk.
“What we learned in the first half of this year and once more last August is that stocks and bonds can go down at the same time, and in a world like that, you have to look at the direction for short-term fixed income assets and cash,” the chief economic adviser added.
Al-Arian indicated that what is happening is the simultaneous decline that occurs only every 50 years, saying: Get out of stocks and bonds and only cash will save you.