Mohamed El-Erian addresses the rotation out of AI: There will still be 'handful of AI winners'

• El-Erian is cautious about the current rotation out of tech/AI, suggesting investors look for structural and opportunistic plays rather than simply 'anti-AI' themes.
• He notes significant uncertainty in the labor market, as indicated by the wide range of jobs report estimates, and stresses the importance of goods inflation remaining low in the upcoming CPI report.
• A potential new Fed leadership under Kevin Warsh could lead to a less data-dependent, more forward-looking monetary policy, with a focus on productivity, balance sheet theory, and internal reforms.

Mohamed El-Erian discusses the market's rotation out of tech and AI stocks, advising caution and a focus on structural and opportunistic investments. He highlights the uncertainty surrounding upcoming jobs and inflation data, and outlines potential shifts in Federal Reserve policy under new leadership, emphasizing a more forward-looking approach and balance sheet theory.