A prominent economist has spoken out about three “silver linings” in today’s battered economy, writing that the current trouble in equity markets could be a correction in the direction of more sustainable and realistic growth.
In a column on Monday, Allianz chief economist Mohammad El-Erian addressed what he perceives as three reassuring aspects of the economy at present, which analysts increasingly believe is headed for a recession. These three “silver linings,” while realistic about the likelihood of troubles ahead, nonetheless attempt to salvage some cause for optimism from the present state of the economy.
First, El-Erian notes that recent stock and cryptocurrency turbulence is a sign that markets have begun to reflect the real value of assets, as opposed to the “artificial” and inflated highs spurred on liquidity from the Federal Reserve. El-Erian views this as a positive and necessary development, with better prospects for long-term investors….