- It's not only the drop last week that's noteworthy, it's the volatility, Mohamed El-Erian says on Sunday Morning Futures With Maria Bartiromo, noting that during the first 10 days of October the DJIA covered more than 10% of its overall value in its wild ups and downs.
- El-Erian says there is "nervousness among central bankers, that if asset prices come down, then that is going to affect the real economy," hence recent cautious comments coming out of the Fed.
- He thinks volatility will continue, notes that stock values remain above fundamentals, and thus urges cautiousness for those thinking the time has come to go bargain shopping.
- Allianz's chief economist also noted that comments out of the Fed last week focused on global economic concerns were somewhat out of character; Fed bankers usually constrain their commentary to the U.S. economy.