El-Erian makes good points on the need for transparency and stability in public markets, and on the risks to capital coming from the Fed’s shift away from QE (even though the economy is weakening), bad market technicals, and the flight of “tactical money” that can hurt dedicated, long term investors in those same markets.
Mohamed El-Erian, CEO and co-CIO, PIMCO, says it’s important to draw lessons from yesterday’s Nasdaq debacle. He also addresses the “wedge,” and whether the underlying economy is strong enough to withstand its removal. He also addresses the current situation in Egypt and the Middle East. Here is a direct video link.