Lack of Fear in Markets could lead to ProblemsBy Adam Haigh
Joachim Fels, Pimco managing director and global economic adviser, on why he thinks investors should be worried.
One of the world’s largest money managers says you should fear the lack of fear in markets.
“The fact that the fear is gone is the main reason why we should be worried,” Joachim Fels, a global economic adviser at Pimco, told Bloomberg TV on Wednesday from Newport Beach, California. “That means most investors are now pretty fully invested and that means they will want to get out if the markets start to correct — exacerbating the downdraft.”
“We’ve seen a big rally, markets are still going higher, but this is now a time for caution,” said Fels.
— With assistance by Scarlet Fu, and Julia Chatterley