In such a world, investors should consider, at the minimum, adding an element of “regret minimization” to their portfolios. This means strongly emphasizing balance-sheet strength and other quality considerations in selecting stocks, building a bigger-than-usual cash buffer in their asset allocation and shortening maturities on their corporate and government bonds.

Mohamed A. El-Erian is a Bloomberg Opinion columnist. He is the chief economic adviser at Allianz SE, the parent company of Pimco, where he served as CEO and co-CIO. He is president-elect of Queens' College, Cambridge, senior adviser at Gramercy and professor of practice at Wharton. His books include "The Only Game in Town" and "When Markets Collide." 

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