1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Canadian Value
Canadian Value
Articles (4624) 

PIMCO's El-Erian Is Worried That His Children May Belong to a 'Lost Generation'

April 29, 2013 | About:

El-Erian thinks the the U.S. economy is getting weaker again and that the Fed will be hinting that they are still prepared to step back in and do more to support growth.

According to El-Erian, the language from the Fed may turn from, "We are taking our foot off the gas pedal" to "we are keeping our foot on the gas pedal and are prepared to do more."

He also thinks that the fundamental data from Europe is worse than what the markets are suggesting.

The main risk of Fed Intervention according to El-Erian is that it circumvents the price mechanism and that money flows to places it shouldn't. This results in assets being priced at artificial levels.

About the author:

Canadian Value

Rating: 3.0/5 (2 votes)


Please leave your comment:

GuruFocus Mobile App

User Generated Screeners

James LiLynch Growth Airlines
James LiLynch and Yacktman Airlines
cspunarJG Value
wwygeraGuru Buying #5
wwygeraGuru Buying #4
wwygeraGuru Buying #3
soteroOvervalued Stocks
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)