El-Erian: Volatility comes here's how to deal with it

Many thought that the stable US economy can maintain growth despite the weakness of the global economy, but disappointing report on jobs and weak economic data show otherwise.

The root of many of the current ills of markets is China. But economic problems there, and problems in emerging markets, finally brought the problem here? according to Mohammed El-Erian of Allianz.

El-Erian believes that the biggest risk to the US economy and the Federal Reserve is not e "low inflation". "The biggest risk for the Fed is not on the side of inflation, this is not the country of employment, it is in terms of financial stability. This is what worries the most."

El-Erian believes that the US economy is in transition from a regime of low volatility to higher, but in the normal range of volatility. "First of all, prices start to move more; second, the assets that have the same class began to depreciate infected by another asset class and third place can get unpredictable correlation between asset classes," he says, but there is protection .

"Investors need to be much more agile - on the one hand, they have huge opportunities to pick good stocks at low prices, but when the markets bounce from time to time, as they will do so, will deal with a good profit."

E.Dimitrov JrTrader