Mr. Sub-par returns now touts the wall

PIMCO's Mohamed El-Erian, said that we should get used to a decade of sub-par equity returns before the market took off rising 50% in his face.

Now he thinks stock have hit a wall.

On May 28, he said "So we've had a bounce..It's a cyclical bounce, but it's too early to say 'victory.'"

That was at SPX 900.

At the end of April, El-Erian said, "The risk is that this change turns out to be a premature relaxation of a critical policy effort, thereby increasing the possibility of a prolonged period of anaemic growth, employment losses, and deflation. After all, history suggests not only that the right balance is very difficult to strike; it also suggests that it is easier to correct later on for doing too much as opposed to doing too little."

Before that he warned stock buyers of the upcoming stress tests of the banks. "The stress tests will accelerate the redefinition of the financial landscape, with a meaningful impact on future economic growth and welfare."

Oh my. Keep me away from stocks!! Doesn't PIMCO manage like $900 billion? And with all that brainpower, PHD's etc, they can't even recognize a bottom? They must have the wrong map!

Now instead of reasoned exegesis we just get words like a "sugar high" or that the market has hit a "wall."

Even though we see cracks in his thesis!

Or maybe, PIMCO just still needs to sell some mortgage bonds!