Why Mohamed El-Erian is staying in cash
With central banks "the only game in town", Mohamed El-Erian has most of his money concentrated in cash.
In 2009, Mohamed El-Erian predicted that the global economy was entering a "new normal" a period of sluggish growth as the hangover from the credit bubble endured. He is no more optimistic about the outlook today.
His money "is mostly concentrated in cash", he told the Orange County Register in a recent interview. "That's not great, given that it gets eaten up by inflation." But there isn't any value left in anything else. "I think most asset prices have been pushed by central banks to very elevated levels."
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
They don't have the tools to bolster growth and employment sustainably, "but they feel obliged to do something". So they set off asset booms to trigger the "wealth effect", hoping that people will spend and companies invest. The result has been a series of bubbles that don't provide a lasting solution to our problems.
-
Best places to live in England and Wales in 2026 – and how much they costCriteria like value for money, natural beauty, good schools, jobs and a high quality of life are key for those looking at areas to buy a house – but how much will it cost you to live in a high ranking town or city? We reveal the best places to live in England and Wales.
-
London house prices: Is the capital's property boom over?Buyers and investors have always been drawn towards the capital’s property market. But as house prices stall, is the market as lucrative as it once was and are buyers and investors still interested?
