Mohamed El-Erian, former CEO and current academic and economic adviser, thinks that a soft landing narrative in the economy, combined with *money on the sidelines*, is driving the current rally. El-Erian acknowledges the bearish sentiment among investors but believes good earnings numbers could bring some back.
*reminder…there is no such thing as money on the sidelines. not sure if he believes this or is using it as a reason other people believe*
“There are no sidelines. Those saying this seem to envision a seller of stocks moving money to cash and awaiting a chance to return. But they always ignore that this seller sold to somebody, who presumably moved a precisely equal amount of cash off the sidelines.” – Cliff Asness