On CNBC, PIMCO’s Mohamed El-Erian says the consensus has definitely shifted from the “V”-shaped scenario to the “New Normal” scenario that’s favoured by PIMCO.
Right now he thinks that perhaps the market has gotten too bearish, as investors romance the “double-dip” scenario, rather than the muddle along scenario.
What’s happening in markets, and the economy, is that everyone is looking for “self-insurance,” holding onto cash at their companies and in their portfolios.
Asked about the chief policy concern, El-Erian cites “inertia,” or the desire to maintain the status quo, rather than actually pursue meaningful structural reforms.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.