The U.S. inventory market will drop as a lot as 30% from final month's highs as world economies go into coronavirus-driven recessions, based on economist Mohamed El-Erian, who appropriately predicted earlier within the week the promoting would proceed till a bear market was reached.

The chief financial advisor at Allianz stated Thursday that buyers shouldn't count on a fast restoration in shares when a backside is lastly reached.

"We'll come again. We'll flip round, however it'll be a tough journey," El-Erian stated on CNBC's "Squawk Field."  

"Hell no," he stated about so-called V-shaped bounce; Wall Avenue discuss for a fast down and up. He stated the market chart would appear to be a "U" or an "L," suggesting extra time spent on the lows earlier than a restoration begins.

"We're going into a world recession. We're going to see a variety of financial sudden stops," El-Erian stated. "The difficulty with financial sudden stops is it is not straightforward to restart an economic system. You have to get folks...