El Erian on why he is avoiding publicly traded stocks and bonds

Mohamed El Erian first ‘shocked’ the mainstream when he admitted in a print interview in early April (I wrote about it here) that he had most of his estimated 2.2 billion personal savings in cash and non-publicly traded investments today (ie., private equity, private loans etc) out of concern for over-inflated public markets (stocks and bonds) thanks to years of central bank-led distortions.

For a billionaire who made his fortune selling people on the merits of public investment markets at PIMCO, to say openly that he has moved out of them to avoid dangerous valuations, you know the risk-reward dynamics have gone full nut job. I couldn’t agree with him more.

Mohamed El-Erian explains where he’s putting his money in cash and illiquid non-public investments in order to avoid the most expensive Fed-inflated assets in public markets. Here is a direct video link.

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