Economist El-Erian: Markets Drunk on Central Bank Support, Prefers Cash

Mohamed El-Erian, chief economic advisor at Allianz, is advocating for keeping wealth in cash instead of stocks and bonds due to predicted intense market volatility. El-Erian believes that recent central bank boosts to interest rates have made cash and cash-like assets more attractive, while stocks and bonds are struggling. He warns that the markets have become overly reliant on central bank support and that inflation will be difficult to control, leading to higher interest rates for a longer period. El-Erian suggests that savers take advantage of higher interest rates by looking for different savings instruments that offer returns of 4% to 5%.