PIMCO's El-Erian Sees Volatility Hanging Around, Here's Why...
Tweet
Share
E-mail
PIMCO CEO and co-CIO Mohamed El-Erian is predicting more market volatility this week.
Following a week riddle with downgrades, debt, and doom, El-Erian doesn't see volatility in markets dying anytime soon.
What's gong to be key this week? Though El-Erian points to Washington making some headway on President Obama's jobs proposal from earlier in September, he has a different catalyst in mind: Greece. Still.
Making a decision on Greece by European policymakers is clutch, and should be on top of European policymakers "must do" lists. El-Erian previously noted that Greek issues have already spread far beyond an acceptable allowance.
In a HuffPo op-ed over the weekend, El-Erian noted that the IMF and World Bank held annual meetings in DC, to little avail. From his piece: "...as of Sunday afternoon, there was still too little progress given the severity of the global situation. Specifically, no detailed agreement had emerged on the specifics of the solution; and the political context on both sides of the Atlantic is not yet conducive enough for their implementation."
So, until that situation is resolved, with Greece already saying it's short on cash and could run out within weeks without additional stimulus from the IMF and/or the ECB things could be iffy for a while yet.
U.S. markets are mixed Monday morning, the Dow Jones and S&P 500 slightly higher, while the Nasdaq is in red territory.
Following a week riddle with downgrades, debt, and doom, El-Erian doesn't see volatility in markets dying anytime soon.
What's gong to be key this week? Though El-Erian points to Washington making some headway on President Obama's jobs proposal from earlier in September, he has a different catalyst in mind: Greece. Still.
Making a decision on Greece by European policymakers is clutch, and should be on top of European policymakers "must do" lists. El-Erian previously noted that Greek issues have already spread far beyond an acceptable allowance.
In a HuffPo op-ed over the weekend, El-Erian noted that the IMF and World Bank held annual meetings in DC, to little avail. From his piece: "...as of Sunday afternoon, there was still too little progress given the severity of the global situation. Specifically, no detailed agreement had emerged on the specifics of the solution; and the political context on both sides of the Atlantic is not yet conducive enough for their implementation."
So, until that situation is resolved, with Greece already saying it's short on cash and could run out within weeks without additional stimulus from the IMF and/or the ECB things could be iffy for a while yet.
U.S. markets are mixed Monday morning, the Dow Jones and S&P 500 slightly higher, while the Nasdaq is in red territory.
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Pacific Investment Management Company, LLC (PIMCO), Standard & Poor's, Mohamed El-Erian, Barack ObamaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
