Economist Mohamed El-Erian stated Monday the U.S. inventory market might drop 30% from final month's document highs earlier than discovering a backside.

"That is going to be treacherous for some time. I'd advise most retail buyers to remain on the sidelines, not panic. There might be alternatives however they don't seem to be now," the chief financial advisor at Allianz stated on CNBC's "Squawk Field" as Dow futures plummeted about 1,300 factors, oil costs fell greater than 20% and the 10-year Treasury yield briefly dropped beneath 0.4%.

El-Erian, previously co-CEO of funding powerhouse Pimco, first warned on Feb. 3 that particular person buyers ought to "resist our inclination to purchase the dip" as coronavirus considerations had been simply beginning take shares decrease. He has not wavered in that recommendation since, saying late final month that the outbreak is "completely different" than common financial crises. Financial sudden stops are onerous to restart," he stated on the time and reiterated Monday.

"It may be messy as a result of we have principally misplaced all our...