Stocks may get rude awakening: Mohamed El-Erian

CNBC reports:

Mohamed El-Erian, former Pimco CEO, told CNBC on Monday that the bond market has figured out what stocks haven't yet: The Federal Reserve, while remaining committed to supporting asset prices, are "targeting different things."

"We are in a transition [at the Fed] from a regime that was tool-based to a regime that is objective-based," he said. "We were told exactly what they were going to do. Now what we're going to do … is conditional on outcomes. That increases uncertainty."