Stocks are ‘stunningly decoupled’ from reality, economist warns
As economists go Mohamed El-Erian, a key voice of punditry through The Great Recession, former PIMCO CEO, and current Allianz chief economic advisor is certainly not the worst person to listen to.
He is right when he says that stock markets have “decoupled” from reality. But markets have long been decoupled at this point.
El-Erian, the former Pimco CEO, pointed to several “worrying signs,” including a record-breaking pace for corporate bankruptcies, job losses moving from small and medium-size firms to larger ones, and more households falling behind on rents, to name a few.
“Investors are showing insufficient concern.”
This article was originally posted here: https://www.ac2news.com/2020/07/stocks-are-stunningly-decoupled-from-reality-economist-warns/.