This is the script of CNBC's news report for China's CCTV on March 13, Wednesday.
Welcome to CNBC business daily.
U.S markets took a breather overnight. With the S&P 500 ending lower, ending a seven-session winning streak.
The Dow eked out the smallest of gains to finish at yet another all-time closing high. With investors seeming wore willing to take on risk, are we seeing the so-called Great Rotation into equities?
Well, according to Pimco's El-Erian, maybe not. Have a listen.
[Sound on tape by Mohamed El-Erian CEO & Co-CIO, PIMCO: We have no evidence of the, quote, great rotation. What you do see is an encouraging inflows into equity funds. So for the last 9 weeks there's been about $36 billion that's gone into equity mutual funds. And just to give you a feel, that offsets all the outflow of last year. So the good news is that investors are coming back to the equity market; however, not out of bonds just yet. It is out of cash, and particularly money market funds. But we've seen no sign as yet of the great rotation that people are talking about.]
But speaking to CNBC earlier, one analyst warned that holding on too much credit could be risky.
[Sound on tape by Peter Schiff, CEO, Euro Pacific Capital: We haven't seen a big move out of the bond market yet. I think people are still holding on stubbornly to over-priced bonds. But when the bond bubble bursts, and it will burst, there is a lot of air that's going to come out.]
Year-to-date the Dow has chalked up 10% in gains. The Nasdaq and S&P 500 have added 7% and over 8% respectively. Will we see more upside for markets?
[Sound on tape by Peter Schiff, CEO, Euro Pacific Capital: This is not really about stocks gaining value. These rallies are about paper money losing value. That's really what's going on.]
[Sound on tape by Dodge Dorland, Chairman & Chief Investment Officer, Landor & Fuest Capital Managers: We suspect that there will be a pull back, it won't be significant because there are so many on the sidelines waiting for that pull back to buy.]
[Sound on tape by Geoff Lewis, Global Market Strategist, J.P. Morgan Asset Management: Well markets are doing well they never go up in a straight line and are starting to look a little bit extended in terms of the technical charts, I think we could have a short term correction.]
[Sound on tape by Christian Menegatti, Managing Director, Global Economic Research, Roubini Global Economics: I think the markets appreciate that once again that ceiling is not going to be a part of this fight. So the market is essentially looking at the economic fundamentals in U.S. that are a little bit better than many other parts of the advanced world.]
Meantime, some analyst say that now could be a good time to be looking at the gold trade. The precious metal saw its biggest gain in two weeks overnight, although it has been trending lower for the most part of the year, losing more than 4% year to date.
[Sound on tape by Peter Schiff, CEO, Euro Pacific Capital: People are jumping to the erroneous conclusion that there's no reason to own gold, but they forget that the only reason the stock market is rising, the only reason it looks like the economy is recovery is because of monetary policy. Because of all the inflation that central banks are creating to paper over our problems and prop things up. But that is an excellent environment for gold.]
[Sound on tape by David Dietze, President & Chief Investment Strategist, Point View Wealth Management: What can happen is, even if the gold price doesn't head north, if it just goes sideways, I think you can make good money and earn good dividends for the gold stocks.]
Li Sixuan, from CNBC's Asia headquarters.