Mohamed El-Erian Quotes

Because in the New Normal you are more worried about the return of your capital, not return on your capital.

Investors should be cautiously positioned as the global economy and markets face major uncertainties. The downgrade will be a further headwind to growth and job creation in the U.S.

Most people are under exposed to global assets, including foreign stocks, bonds and currencies.

[When] the market is trying to get to terms with, first, lower global growth, particularly out of emerging markets and China. And, second, the market is worried the central banks have run out of ammunition. So put these two things together, and then investors are repricing the market lower.

How long can interest rates stay negative? Think about this. Not only are you lending your money to governments, but you're paying them interest for the privilege of doing so.

As we spend more, and as companies are pushed to invest, they say, "Hey wait a minute! There's more demand in the system. Let's invest more."

Investors should invest on what they know. The biggest mistake is to invest on what they don't know.

After many decades of Disney movies, we have been conditioned to expect princesses to fall in love quickly with their charming princes and 'live happily ever after.'

I remember when I was growing up, you would go to a bank to open a deposit, and they'd give you a toaster. A free toaster. These days, if you're a company, and you go to a bank, they could easily turn you away! They don't want your deposits anymore.

Investors have to ask themselves two questions. How much can we grow our investments? And, can we afford our mistakes?

Investors have few spare tires left. Think of the image of a car on a bumpy road to an uncertain destination that has already used up its spare tire. The cash reserves of people have been eaten up by the recent market volatility.

The one instrument that has relative political autonomy is monetary policy. Central banks do not need to go to Congress to get approval for an interest rate hike.

The best and most sustainable love story for markets is one based on a healthy and dynamic real economy that creates jobs and opportunities for many more people.

Today's reports confirm that, unfortunately, post-crisis America is still not back to its good economic self.

We normally think if you're going to lend someone money, you should get some reward for doing this. In Europe, it's a tax!

If the Scottish people decide to opt for independence, it would not be a good idea for Scotland to maintain a very rigid link to the pound.

As a whole, investors should welcome attempts to safeguard the integrity of markets. You need very clear rules applied to markets.