El-Erian: Weak Market Foundation Brought Back Volatility

The video discusses the recent market sell-off, highlighting the return of realized volatility due to weak market fundamentals. It explains how rumors, such as those about Chinese growth, can significantly impact market stability. The market is described as highly sensitive to news, with potential for rapid changes based on good or bad information. The role of the Federal Reserve is also examined, noting their cautious approach to policy guidance and their reluctance to be repeatedly influenced by market fluctuations.

How does the speaker describe the current state of the market?

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What is the expected action of the Fed in the upcoming week according to the speaker?

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