Mohamed El-Erian stated Wednesday that he could be hesitant to place money to work, arguing the inventory market continues to be on a downward pattern as a result of coronavirus pandemic.

However he supplied a highway map for traders who really feel inclined so as to add to their portfolios.

"No matter money you've, divide it over 5 installments," El-Erian stated on CNBC's "Squawk Field," suggesting dollar-cost averaging into the market over a number of months.

El-Erian, chief financial advisor at Allianz, stated he understands why some might imagine the technique of averaging into the market "is not very subtle."

"However nobody can inform you for certain how these dynamics are going to evolve. We merely haven't seen this earlier than," he stated, including that no person can choose the market's precise backside.

El-Erian's remarks got here as Wall Road was arrange for declines on the primary day of the second quarter. The Dow Jones Industrial Common was down greater than 500 factors midmorning Wednesday, following Tuesday's 410-point drop.

The Dow and S&P...