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Opinion
Mohamed A. El-Erian

Believe It or Not, the Market Has Three Silver Linings

The pain may not be over for investors, but genuine value is being restored, government bonds are mitigating risk again, and the chief risks aren’t derailing the system’s functioning.

The pain isn’t over, but there are some bright spots.

The pain isn’t over, but there are some bright spots.

Photographer: Michael Nagle/Bloomberg

To say that the first half of the year was painful for investors would be a big understatement. They suffered large losses on their holdings of stocks, corporate bonds, emerging markets, crypto and other assets; and, for most of the last six months, they received no protection from government bonds whose traditional risk mitigation attributes gave way to big losses, too.

Indeed, other than oil and some other commodities, it was a dismal picture all around in public markets. It is only a matter of time until valuations in private equity follow suit.