Investors should be wary of ‘non-recoverable mistakes’: Mohamed El-Erian

Queens College Cambridge President Mohamed El-Erian warned investors that the stock market is very fluid on "Mornings with Maria" Thursday, and advised them not to make any "non-recoverable mistakes."

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MOHAMED EL-ERIAN: If you're a short-term investor, what you really need to be looking at is the Federal Reserve and whether it can taper, reduce its asset purchases in an orderly fashion. That is the most important determinant for the next few weeks. If you're longer-term, you've got to recognize that there's a lot of fluidity, a lot of moving pieces. So don't make any non-recoverable mistakes.

Most mistakes in the investment world can be recovered over time, but the few that are not recovered, default is a perfect example of a non-recoverable mistake, which means a lot of granular analysis.

Make sure that you embrace longer-term themes, and you need active management for this world. It's a different environment than what we had in the last few years because of what's happening on the supply side.

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