Disruptions to earnings and the economy from 'shock' events such as the coronavirus tend to stick around longer than more fundamental downturns, the Allianz chief economic advisor said.
plunged over 1,000 points or 3.5%, in its worst single-session in more than two years.
Just because buying market dips has worked in the past does not mean it's going to work this time, he argued. Disruptions to corporate earnings and economic growth from "shock" events such as the coronavirus tend to stick around longer than more fundamental downturns, said El-Erian.investors not to buying market drops as they might have in the past. He said at the time that the coronavirus is going to "paralyze China," adding that it will "cascade throughout the global economy.
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