Despite doom and gloom and the dismal performance of the stock market this week, economist Mohamed El-Erian calls recession fears “silly.” | Source: REUTERS / Shannon Stapleton
By CCN Markets: Investors are getting a bit of a reprieve today as the stock market recaptures some of yesterday’s massive losses in what was a brutal day on Wall Street. The trade deal appears to be the impetus for the market, and the tug-of-war between President Trump and President Jinping seems far from over, based on the looks of things. Don’t let the stock market volatility fool you, however. Despite the doom and gloom and the dismal performance of the stock market this week, according to Allianz Chief Economic Adviser Mohamed El-Erian, the violent market swings say nothing about the state of the economy, telling CNBC:
“Our markets are going to remain incredibly volatile despite an economy that’s doing well. I think people have to understand the distinction between the economy and all this silly talk about us going into a recession this year, we’re not. And on the other hands the markets, which are going to be more volatile and require a different approach.”
“People have to understand the distinction between the economy and all this silly talk about us going into a recession this year. We’re not,” says @elerianm
Here’s his explanation: pic.twitter.com/dRo3zzY3nd
— Squawk Box (@SquawkCNBC) August 15, 2019
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