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El-Erian Says Cut Stock Holdings as Stagflation Concern Grows

  • ‘Take some money off the table’ as economy not priced in
  • His baseline is for lower global growth, higher inflation
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Mohamed El-Erian, a Bloomberg Opinion contributor, says the Federal Reserve is being forced into a choice between risking recession or prolonging inflation. He speaks during an interview with Bloomberg’s Jonathan Ferro on “Bloomberg The Open.” El-Erian’s opinions are his own.Source: Bloomberg

Given Mohamed El-Erian’s prescience on inflation, investors may want to hear what he says about the stock market.

“If I’m investing over the next 12-month horizon, I would reduce equities at this point. I would take some money off the table,” the bond market veteran told Bloomberg TV’s The Open on Tuesday. “The market is giving you a wonderful opportunity to come out.”