Mohamed El-Erian said he's favoring cash as well as the riskiest investments, such as venture capital, in his own portfolio.
El-Erian is less bullish on publicly traded securities such as stocks and bonds because global central banks have pushed their prices to "distorted" levels, he said in an interview in Singapore. Cash comprises about 30 percent of his portfolio, which is more than most people have, according to El-Erian.
"There's enormous risk in public markets because that's the one that central banks have distorted to the greatest extent," said El-Erian, chief economic adviser at Allianz SE and a Bloomberg View columnist. "It's very hard to say I'm going to buy a basket of public equities and go to sleep for the next five to 10 years and feel good about the returns. Similarly with bonds."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
