El-Erian and Pimco Say to Build Cash After Latest Market Gains
- Risks are being downplayed in equity market ahead of Trump
- Goldman analysts among those that suggest caution on stocks
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Mohamed El-Erian and his former colleagues at Pacific Investment Management Co. say now’s a good time to take advantage of the latest rallies in global financial markets and scale back from risk.
After the Dow Jones Industrial Average rose to a record, fueled by bets on the incoming U.S. administration spurring reflation in the world’s largest economy, some investors are starting to voice concern. The question: can President-elect Donald Trump deliver on fiscal stimulus and job growth after taking office next month in the face of a fractious American Congress?