Mohamed El-Erian warns .. “Investors should prepare for greater market fluctuations”.

The famous economist urged Mohammed Al-ArianInvestors are prepared for a wave of market volatility if the Federal Reserve pulls back from the stimulus measures initiated during the period of the Covid-19 outbreak.

“I am a little worried that this wonderful world in we have experienced that has low volatility, and all in it is rising, may crash with greater volatility, “said the chief economic adviser of Allianz SE and president of Queen’s College Cambridge.” Fox News Sunday. “

Although much depends on behavioral changes, El-Erian indicated that the Fed should ease monetary stimulus.

“If I were an investor, I would realize that I am seeing a huge surge of liquidity thanks to the Fed, but I remember that the waves tend to break at some point, so I would be very careful,” he said.

In a Bloomberg article, El-Erian pointed out that high inflation and supply chain bottlenecks are due to transient factors. He predicted “at least another year of high inflation”.

He also said: “Things will get worse before they get better … so we will have to face further shortages of goods, we will have higher prices and inflation will remain at the 4-5% level.”

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