Allianz chief economist Mohamed El-Erian mentioned Monday that long-term buyers must be cautious about shopping for shares as a result of monetary markets are exhibiting indicators of stress.

"We began seeing at this time extra market stress, extra liquidity stress. Yesterday, it was simply the credit score market and the inflation market. At this time, it obtained to the Treasury market. So watch out out there's what I inform folks," El-Erian mentioned on CNBC's "Closing Bell." 

The U.S. inventory market dove once more on Wednesday, with the Dow Jones Industrial Common falling 5.86% to complete in a bear market, which suggests it's greater than 20% beneath its latest highs. Nevertheless, not like different days throughout the latest rocky interval for markets, Treasury yields rose as shares fell.

The yield on the 10-year Treasury, which rises when there's extra promoting stress on the bonds, rose 6 foundation factors to 0.82% on Wednesday. 

Moreover, the Federal Reserve introduced Wednesday afternoon that it was increasing its repo operations to $175 billion to ease...