Legendary investment manager Mohamed El-Erian told CNBC this morning that the stock market spent July on a “sugar high” that isn’t justified by underlying economic conditions.
El-Erian, who co-chief executive officer of PIMCO, said we are still a good deal away from registering an economic recovery.
“The July part of the rally is a bit of a sugar high,” he said. “We need final demand. We need a feeling that deleveraging in the private sector has run its course, that people feel confident now to engage in consumption, investment.
“It’s not happening yet on the national level, it’s not yet happening at the global level.”
Here’s the interview:
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