Mohamed El-Erian: The stock market could still go back down to new coronavirus lows

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Mohamed El-Erian: The stock market could still go back down to new coronavirus lows
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'I don't think we're forming a bottom yet. I think we're going down at a slower rate,' Allianz's Mohamed El-Erian said Friday.

The stock market could still touch new lows as uncertainty around the coronavirus pandemic persists, Mohamed El-Erian argued Friday.

"Either we get a really sharp fall or, alternatively, we get good news on the medical side. That good news is starting to happen, but hasn't reached critical mass," he argued.recorded its recent low of 2191.86 on March 23, which was about 35% lower than the index's all-time high in February. The S&P 500's Thursday close of 2,526.90 is about 15% higher than the March 23 low.

The uncertainty around the situation makes it likely for investors to make mistakes, El-Erian said. He said investors should ask themselves which mistake they can afford: Being too early or being too late.

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