Market Overview

Mohamed El-Erian On Playing The Market Post-Brexit: 'Let The Dust Settle'

Mohamed El-Erian On Playing The Market Post-Brexit: 'Let The Dust Settle'
Related SPY
SamurAI Founder Explains The Risk Profile Benefits Of Buying Long-Term Options Vs. Equity ETFs
Dow Chemical CEO Talks 4% GDP Growth Under Trump's Presidency
Investing Checklist For The Trump Era (Seeking Alpha)
Related EWU
The British Pound's Best Day Since 2008, Explained
British Pound Spikes As Brexit Concerns Ease
Pound soars 3% in biggest day since 2008 (Seeking Alpha)

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.

Related Link: Brexit: Cameron Resigns, European Stocks Tank And Pound Hits 30-Year Low

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.

Tune into the interview with El-Erian at 1:08 in the clip below. PreMarket Prep airs live every morning from 8-9:30 with a live chat here, or catch the podcast here

Posted-In: BrexitNews Events Global Economics Exclusives Media Interview Best of Benzinga


Related Articles (EWU + SPY)

View Comments and Join the Discussion!