Pimco’s El-Erian, Gregory Mannarino, Mark Grant, & Charles Biderman: Stock Market Rally Is ‘Artificial’ And ‘Dangerous’. Governments Are In A Critical And Perhaps Life Threatening Situation, And Cyprus Is A Milestone To Economic Disaster!
March 30th, 2013
Pimco’s El-Erian: Stock Market Rally Is ‘Artificial’
The impressive stock market rally is “artificial,” being driven by central banks’ super-low interest rates, says Mohamed El-Erian, CEO and co-CIO of Pimco.
Going forward, the market will need more “genuine growth” in the form of strong corporate balance sheets and robust economic activity and less “assisted growth” from central banks, El-Erian writes in a blog for CNBC. That transition will probably occur in the United States, but not in Europe any time soon.
While the Dow Jones Industrial Average had its best first-quarter performance since 1987 and the Standard & Poor’s 500 surged 10 percent, “Investors,” he says, “need only look at where some other benchmarks ended the quarter to get a feel for the unprecedented and artificial nature of today’s capital markets.”
U.S. Stock Market Distortion Is Very Dangerous. By Gregory Mannarino