Fed rate rise could be a mistake, El-Erian says

The recovery in the US economy is not strong enough to pull the economy along alone, one of the world´s most reputed economic commentators said on Thursday evening.

In remarks to TV broadcaster CNBC´s Fast Money: Halftime Report, Mohammed El-Erian, Alianz´s economic adviser, said: "[The US economy] is not that powerful to pull everybody out".

Emerging markets have come "completely unhinged" and could drag Europe into recession, El-Erian added.

"There´s a risk the Fed does the right thing at the wrong time," the economist said regarding the possibility of an interest rate hike in the US later this year.

Investors would be well advised to look at stocks with strong underlying franchises and sectors which have struggled in recent months.