Mohamed El-Erian On Playing The Market Post-Brexit: 'Let The Dust Settle'
Noted economist Mohamed El-Erian was a guest on Benzinga's Premarket Prep show Friday morning and offered his expert analysis following a 'leave' victory in the Brexit vote.
According to El-Erian, investors should "let the dust settle" in financials before considering buying stock. His comments follow a plunge in financial stocks worldwide, particularly U.K.-based banks.
U.S. banks stocks as whole were down about 6-7 percent, while U.K.-based bank stocks were lower by more than 20 percent.
El-Erian suggested investors should seek out equity investments in which the company boasts a strong balance sheet. Emerging market currencies and high yield debt are also trading instruments investors should be looking at.
Finally, El-Erian pointed out that many trading accounts will be forced to cover losing positions over the next few hours, indicating a volatile trading session is in store after the market opens.
The SPDR S&P 500 ETF Trust (NYSE: SPY) was down 3 percent in Friday's pre-market session.
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