From Mohamed El-Erian, former CEO of Pimco Investments, when asked where he is putting his money (of which he made a great deal at Pimco):
It is mostly concentrated in cash. That’s not great, given that it gets eaten up by inflation. But I think most asset prices have been pushed by central banks to very elevated levels.
This is a revolutionary thought in many precincts of Wall Street: sometimes it makes sense to be mostly or all the way out of a market, especially one where values have been completed distorted by six years of virtually free money from the Federal Reserve. The number one investment virtue is patience.
