Pimco chief executive warns against protectionism

Mohamed El-Erian, chief executive officer of bond investor Pimco, has warned investors to hedge against a worldwide escalation in protectionism.

Speaking at a press conference on March 2, El-Erian, who along with Bill Gross is Pimco’s co-chief investment officer, said there was a 10–15% chance of a protectionist global picture materialising during 2010. In such a scenario, countries’ responses to the crisis would become nationalistic, ultimately resulting in much lower global growth, and would c