El-Erian Warns of Bumpy Road Ahead But Also Plenty of Opportunities

Markets may face a wild ride, but there will be strong investing opportunities, according to one leading economist.

Mohamed El-Erian, Allianz’s chief economic advisor, spoke with CNBC’s “Squawk on the Street” on Monday morning.

“We have a bumpy road ahead of us, but I keep on stressing, it will create a lot of attractive opportunities,” he said, adding that investors may want to key in on a fundamental shift in economic conditions—rather than Federal Reserve policy decisions.

All eyes are on the Fed, which some predict could announce a rate increase when the Federal Open Market Committee meets later this week.

If the central bank opts to raise short-term interest rates, the effects would likely be broadly felt across many markets, but El-Erian said it’s not obvious if the Fed will make that move.


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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza