‘Mainly Technical’: El-Erian Explains Last Week’s Selloff Across Stocks, Crypto, Silver
Synopsis
The economist added that the “buy on dips” sentiment led to a rebound in equities toward the end of the week.
Mohamed El-Erian, Chief Economic Advisor at Allianz, explained the volatility in the equities, commodities, and cryptocurrency markets last week, reportedly stating that it was “mainly technical.”
“It was mainly technical. It was a deleveraging that started in the most speculative parts of the market.. silver, bitcoin, etcetera, and started contaminating others,” he said during an interview with CNBC.
The economist added that the “buy on dips” sentiment led to a rebound in equities toward the end of the week – the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite indexes ended Friday with gains of between 2% and 2.5%.
“The week before was policy news. This week is going to be all about data. It’s a fascinating time to be observing and participating in these markets,” he added.
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