El-Erian: Lessons for Investors in Turbulent Markets

Very interesting discussion from Mohamed A. El-Erian, who gives these three bulleted lessons investors should be learning from the current shift in volatility:

1. Long periods of market calm create the technical conditions for violent air pockets.

2. Crowded trades can be a lot more unstable than most investors expect.

3. During market turmoil, investor differentiation gives way to indiscriminate action.

Go read the entire thing . . .

 

 

Source:
Three Lessons for Investors in Turbulent Markets
By Mohamed A. El-Erian
Bloomberg View, February 7, 2018
https://www.bloomberg.com/view/articles/2018-02-07/three-lessons-for-investors-in-turbulent-markets

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