El-Erian Says Investors Should Prepare for Bigger Market Swings
- Fed unleashed liquidity wave, which eventually ‘tend to break’
- Expects inflation at elevated levels for at least another year
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Mohammed El-Erian said investors should prepare for increased market volatility if the Federal Reserve pulls back on stimulus measures set in motion by the Covid-19 pandemic.
“I worry a little bit that this wonderful world we’ve been living in of low volatility, everything going up, may come to a stop with higher volatility,” El-Erian, the chief economic adviser at Allianz SE and president of Queens’ College, Cambridge, said on “Fox News Sunday.”