Mohamed El-Erian Says America's Leadership Eroding, Foresees More Global Disorder If Western-Led Economic Order Fails
Portfolio Pulse from Shanthi Rexaline
Economist Mohamed El-Erian expressed concerns about the eroding leadership of the Western-led global economic order, attributing it to internal stress and policy missteps over the years. He warned of increased global fragmentation and disorder if the current international framework fails. El-Erian urged Western Powers to strengthen multilateral institutions to mitigate risks. Despite these concerns, the SPDR S&P 500 ETF Trust (SPY) has gained about 25% this year.
December 15, 2023 | 5:49 am
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Despite concerns about global economic order, SPDR S&P 500 ETF Trust (SPY) has gained about 25% this year, indicating market resilience to geopolitical issues.
While El-Erian's comments highlight potential long-term risks to the global economic order, the short-term market performance, as reflected by SPY's gains, suggests that current investor sentiment and market dynamics have not been significantly impacted by these macro concerns. However, ongoing developments could alter this outlook.
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