The U.S. economy saw 3.2 percent growth in 2016, 3.6 percent in 2017 and is projecting 3.9 percent for this year.
“You can argue about the distribution of the money from tax reform, but at least for the short term tax reform will boost the economy,” he predicted.
But “you are right to be concerned about the debt,” El-Erian added. The debt has to be measured in relation to the nation’s income. The real question is, “How much debt can you afford?'”
El-Erian took a poll of the audience at the beginning of his talk and found that 67 percent of the audience of financial professionals thought the United States market is not in a bubble and 33 percent thought it is.
By the end, 74 percent of the audience thought there was no bubble.