Investors should be holding healthy levels of cash in order to take advantage of “known unknowns” that become clearer as the economy evolves, Mohamed El-Erian, co-CEO of Pimco, told CNBC.
“There are cyclical tailwinds for now that are going to overcome the structural headwinds,” he said, adding that those cyclical moves are important to note for how they perform within the larger structural environment of financial markets.
El-Erian also expects to see “a multi-speed world” where “part of the world is going to grow and grow robustly. There’s going to be another part, the US and UK, that is going to have difficulty once all the stimulus and inventory cycle goes through.”
Source: CNBC, March 15, 2010.
