Count me among those that believe that the G-20 is one of the better approaches to global governance in a world that desperately needs improved international policy coordination. While the G-20 has not gotten to where it could and should be, its periodic meetings provide us with important insights into global policy issues.
Ed: There follows a dissection of the G20 communiqué and the piece ends with:
I fear that all this may continue to catch off guard at least three dimensions that are still significant in today’s marketplace:
- Mindsets that have difficulties recognizing regime shifts, preferring instead the illusionary comfort of the more familiar cyclical frameworks;
- Approaches that focus excessively on rates of change and inadequately on levels; and
- Investment portfolios that are over-exposed to equity and credit risk, and that maintain insufficiently hard interest rate duration.
In concluding, I would repeat what I said early yesterday morning when asked by a reporter
“What does the US jobs report mean for markets?”
”Investors should keep their seat belts on and tight.”
Mohamed El-Erian: Listen carefully to what the G20 is saying
Mohamed A. El-Erian is CEO and co-CIO of PIMCO.