10 Yr Bonds & USD May 2015
"Liquidity is the most under appreciated risk factor out there. We've seen the bond market reprice to an understanding that liquidity is not as abundant as all that, and I would just worry about the liquidity risk... At some point down the road, fundamentals have to validate these high prices." said Mohamed El-Erian, Allianz Chief Economic Advisor May 18, 2015"
At 2.2 minutes in the brief interview snippet, El-Erian posits that "You can't kick the can for the whole global economy. The longer we are in this new normal of low growth and equities are propelled by new cash, the greater is the risk of financial stability down the road."
In a word; valuation. More charts at www.chpc.biz
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