"If the mindset changes from technicals to fundamentals then this market has further to go," he said,"but it remains to be seen whether it will change."
As the Nasdaq and S&P 500 posted record highs in August after five straight months of gains, El-Erian said the stock market is not only decoupled from the US economy, but also from the VIX volatility index , Treasury, and junk bond markets. If investors choose to gauge the stock market based purely on fundamentals, they would find it hard to ignore economic uncertainty and the implication of corporate bankruptcies, he said.
"If you are in a liquidity-based paradigm, you will be dominated by relative thinking, and that's where we've been. If you're in a fundamentally-based paradigm," El-Erian added,"the answer is: no, you are not paying for an economy that faces not just moderation in the way of improvement, but a rising level of bankruptcies."
Or, it may just burn down, as we realize that we don't need you.
Short seller for sure!! 😂
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: CNBC - 🏆 12. / 72 Read more »