Submitted by Taps Coogan on the 30th of July 2018 to The Sounding Line.
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Allianz chief economic advisor Mohamed El-Erian recently spoke with CNBC to discuss what he believes is the end to the ‘new normal,’ a popular term he coined a decade ago to describe the current era of extreme central bank liquidity and levitating asset prices.
“I think we are changing paradigms… Global liquidity is receding slowly… It’s no longer about massive liquidity coming in. It’s no longer about synchronized pickup in global growth. It is about divergent and dispersion. Divergence in economic and corporate performance and in technical influences and dispersion in asset price performance. This is a great time for stock picking. This is a great time for playing the yield curve and this is a very different investment paradigm from a year ago… Too many people fell in love with liquidity forever and synchronized growth forever.”
There is more to the interview, so enjoy it above.
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