North Korea policy is disruptive to markets ‘in a good way’: El-Erian

Allianz Chief Economic Advisor Mohamed El-Erian on the markets, North Korea, Iran, the U.S. economy.

Three American detainees held in North Korea have been freed and are on their way home from Pyongyang with Secretary of State Mike Pompeo, President Donald Trump announced on Twitter Wednesday.

Mohamed El-Erian, chief economic adviser at Allianz, told FOX Business, the markets are grasping Trump’s policies.

“A change in tactic at the right time can be disruptive in a positive way,” El-Erian told FOX Business’ Maria Bartiromo on “Mornings with Maria” on Wednesday. “We tend to think disruptive politics is bad – it turns out that disruptive politics can actually get different outcomes.”

The announcement follows the president’s decision to exit the Iran nuclear deal. El-Erian said long-term investors shouldn’t be concerned about market volatility.

“I think what the markets have understood is that these steps are part of a process for what economists call multi-round games that can have good outcomes,” he said.