El-Erian said he sees the growing level of government involvement as a positive sign for the economy as both main street and Wall Street are under pressure and are in need of outside help. He hopes that Obama and his team will reach an economic solution by the end of February.
“For any investor today, understanding government action is really important,” he said. (Watch the accompanying video for the full interview...)
In the meantime, El-Erian says investors need to learn not to "run far head of the healing process" and to stay under the “government umbrella.”
“There is a healing going on…[but] don’t go and chase risk until you see the healing process get there,” he said.
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