Noted economist Mohamed El-Erian was a guest on Benzinga's Premarket Prep show Friday morning and offered his expert analysis
following a 'leave' victory in the Brexit vote.
According to El-Erian, investors should "let the dust settle" in financials before considering buying stock. His comments follow
a plunge in financial stocks worldwide,
particularly U.K.-based banks.
U.S. banks stocks as whole were down about 6-7 percent, while U.K.-based bank stocks were lower by more than 20 percent.
Related Link: Brexit: Cameron
Resigns, European Stocks Tank And Pound Hits 30-Year Low
El-Erian suggested investors should seek out equity investments in which the company boasts a strong balance sheet. Emerging
market currencies and high yield debt are also trading instruments investors should be looking at.
Finally, El-Erian pointed out that many trading accounts will be forced to cover losing positions over the next few hours,
indicating a volatile trading session is in store after the market opens.
The SPDR S&P 500 ETF Trust (NYSE: SPY)
was down 3 percent in Friday's pre-market session.
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