Dubai’s debt crisis may serve as a catalyst for a market correction but it does not signal a new crisis, investment manager and Pimco’s CEO Mohammed El-Erian told CNBC Friday.
“There will be opportunities created because markets tend to overshoot on the way up and they tend to overshoot on the way down, but this is a catalyst call. Let’s see to what extent markets reprice,” El-Erian said in an interview.
“This is a lag financial effect,” he said, adding that the crisis shows financial markets are not yet calm after last year’s collapse.
“Now I think investors will start looking more closely at fundamentals,” he added.
