During an interview on Mornings with Maria, Allianz Chief Economic Advisor Mohamed El-Erian said the presidential election will become a contributor to price movement.
“So far my sense is markets don’t know how to price it… Markets are waiting for clarity and we are going to have more clarity in the next couple of weeks as these primaries continue.”
While the market volatility has caused El-Erian to shy away from equities, he said the best way to make money in the markets is to be tactical.
“You’re going to have to fade rallies and then you’re going to have to have the courage to step in when things clearly have over-shot,” he said.
He also characterized growth in the global markets.
“I think in the United States it is getting better gradually, [but] the problem is you cannot be a good house in a bad neighborhood. The neighborhood, the global economy, continues to weaken,” he said.