Economics
El-Erian Warns of `Tipping-Point' Risk for Levered-Up Investors
- Investors have been adding risk amid calm in markets, he says
- Economist says question is whether Congress will pass policies
Mohamed El-Erian, chief economic adviser at Allianz SE and Bloomberg View columnist, discusses the potential return of Glass-Steagall legislation and explains why he sees the next crisis coming from non-banks. He speaks on 'Bloomberg Surveillance.' (El-Erian is a Bloomberg View columnist. The opinions expressed are his own.) (Source: Bloomberg)
This article is for subscribers only.
Mohamed El-Erian, Allianz SE’s chief economic adviser, said that investors lulled by rising stock prices have been adding risk that may come back to burn them.
For now, the assumption that markets will remain stable has been a self-fulfilling prophecy as investors use leverage to build their portfolios, El-Erian said Thursday in an interview on Bloomberg Television.