Share
Yahoo!
There’s been a lot of hand-wringing about the stock market rally. With major averages consistently making new records, the S&P 500 up another 1.5% after last year’s 16% gain, and the seemingly bottomless appetite for IPOs and SPACs (Special Purpose Acquisition Company), investors want to know: What could bring stocks tumbling down?
Mohamed El-Erian thinks the path of least resistance continues to be upwards as equities float along in a “rational bubble,” a phenomenon outlined in a Financial Times article earlier this year.
But there are four risks to the continued rally. El-Erian, the president of Queens College at Cambridge University and the Chief Economic Adviser to Allianz, outlined those risks in an interview with Yahoo Finance Live.
First, the least likeliest risk is that the Federal Reserve would pull back on its monetary stimulus. But as Fed Chair Jay Powell said just Thursday in a webinar, “Be careful not to exit too early.”
By Julie Hyman | 14 Jan 2021
RELATED TOPICS:
Fresno Trash Hauler’s Response to Overpayments: We Followed the City’s Rules
2 hours ago
Which Six QBs Were Selected in the Top 12 of the NFL Draft?
2 hours ago
Nuggets Close to Sweeping Lakers After Game 3 Win
2 hours ago
Jose Ramirez: ‘I Want to Make a Statement and Put on a Show’
3 hours ago
Yoshinobu Yamamoto’s 6 Shutout Innings Help Dodgers Finish Sweep, Defeat Nats 2-1
4 hours ago
The 49ers Add Florida Receiver Ricky Pearsall With the 30th Draft Pick
4 hours ago
Political Stunt, Egg on His Face, Personal Vendetta. Who’s Fresno DA Talking About?
4 hours ago
Fresno Oops? Garbage Hike Protest Vote Delayed by Error