By Staff Reporters
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Investors should avoid “distorted markets that have created a lot of damage,” Mohamed El-Erian said.
The economist recommended holding cash and short-term bonds. Unusually, both stocks and bonds have experienced corrections in recent weeks. Stock and bond markets appear “distorted,” meaning it’s high time for investors to tweak their portfolios. El-Erian spoke against a backdrop of falling stock and bond prices in recent weeks, that investors should hold cash and short-term, fixed-income assets.
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The euro dropped below $0.99 for the first time in two decades after Russia halted the flow of natural gas. A surge in the dollar piled pressure on other major currencies, with investors flocking towards the “safe-haven” asset. Analysts expect the euro-zone economy to tip into a recession in the coming months as the energy crisis bites.
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Filed under: Alerts Sign-Up, Experts Invited | Tagged: "Distorted" Markets, "Distorted" Stock Markets, eoro, eoro-zone, Mohamed El-Erian |
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