That mindset will be tested in the coming days as market fundamentals come into play, he said in an interview on CNBC. The Nasdaq Composite, which has rallied hard over the weeks, tumbled by nearly 5 percent on Thursday as high-flying tech stocks took a breather. If a mindset shift is looming, El-Erian suggests market players should look out below. “We could have another 10 percent fall, easily ... if people start thinking fundamentals,” El-Erian predicted. “If you are in a liquidity-based paradigm, you will be dominated by relative thinking, and that’s where we’ve been.

Source: The Standard September 04, 2020 02:37 UTC