A Strategy for Today

I am very underweight equities-below 30%,Mohamed El-Erian revealed.I am increasing as the rally unfolds.Fade the strong rallies;buy the strong sell-offs.It's hard to do,taking you out of your comfort zone.There are four contracting sectors now:housing;finance;the consumer;and the rest of the world.At least two of the four must recover in order to be considered a turnaround.Now people are trying to get up.It's gonna be sequential.The federal programs are getting traction,but it's early.Commercial paper,money markets and mortgages are getting better,but it's a long lag between conception and effectiveness,Mr.El-Erian believes.