What's next for the markets? Mohamed El-Erian, PIMCO CEO & co-CIO and Douglas Holtz-Eakin, Financial Crisis Inquiry Commission were seen on a CNBC interview.
El-Erian said stock prices are "getting toward fair value. We're not quite there yet because I don't think analysts quite understand what the new normal looks like in terms of lower growth and lower top-line revenue growth, but we're getting there."
He said the bond market, with the yield on the benchmark 10-year Treasury note yield below 3 percent, is close to fair value.
He does not see the US slide into a second leg of recession but hedge himself by saying it is a "risk scenario".
El-Erian said stock prices are "getting toward fair value. We're not quite there yet because I don't think analysts quite understand what the new normal looks like in terms of lower growth and lower top-line revenue growth, but we're getting there."
He said the bond market, with the yield on the benchmark 10-year Treasury note yield below 3 percent, is close to fair value.
He does not see the US slide into a second leg of recession but hedge himself by saying it is a "risk scenario".
