El-Erian: Time To Scale Back Risk

PIMCO’s Mohamed El-Erian says it’s time to gradually take money off the table because asset prices have gotten ahead of fundamentals. “We think that prices are artificially high, that maintaining them here is going to be hard as central banks become less effective, and that it’s time to book some profits and to wait for some better entry points,” El-Erian tells Yahoo! Finance’s Daily Ticker. But he also says that this isn’t a “Lehman moment.” But he thinks “prices that have gotten way ahead of what policy can deliver.” El-Erian also talks about how the easing policies of central banks around the globe may be leading to currency wars between countries.

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