Mohamed El-Erian warns US market exceptionalism faces mounting challenges

10 articles · Updated · Business Insider · May 1

He said the S&P 500 closed above 7,200 for the first time as the Iran war entered its third month and oil prices revived inflation concerns.
El-Erian argued years of ultra-low rates and abundant liquidity conditioned investors to buy dips, leaving markets and the economy carrying "baggage" from overly loose fiscal and monetary policy.
He said US outperformance cannot keep diverging indefinitely from the global economy, urging investors to focus on relative positioning as forecasters increasingly warn of weaker long-term US equity returns.

Could the end of cheap money and rising global risks mean the era of US market outperformance is truly over, or is another rebound possible?

With inflation and job growth both threatened, what new tools could the Fed or global policymakers deploy to avoid a 'lost decade' for US markets?