El-Erian: If Trump Wins, S&P Could Drop 5-10%

The transcript discusses potential market reactions to political events, particularly if Donald Trump wins the election and reiterates anti-trade rhetoric. It predicts significant market movements, including a decline in the S&P 500 and changes in bond markets and currencies. Investment strategies are advised, focusing on tactical positioning and name selection. The US political climate is analyzed, highlighting congressional gridlock and its impact on economic policy. Finally, investment exposure and market distortions are discussed.

What are the potential effects on corporate bond markets and high yield bond markets if the anticipated events occur?

What investment strategy does the speaker suggest in response to current market conditions?