Mohamed El-Erian, the chief economic adviser at Allianz, has warned in a Financial Times op-ed that investor stress from Covid-19 is “far from over” and they must prepare for a debt crunch.
from Business Insider
In a Financial Times op-ed, famed economist Mohamed El-Erian warned that the financial stress from Covid-19 is not even close to being over.
“The financial stress caused by COVID-19 is far from over,” he wrote.
El-Erian wrote that investors should ready themselves for defaults that will “spread far beyond the most vulnerable corporate and sovereign borrowers.”
He advised that instead of buying assets which have “stunningly decoupled” values from their underlying fundamentals, investors should adjust their portfolios to focus on the recovery potential of their assets.