Mohamed El-Erian, chief economic adviser of Allianz, said the Federal Reserve made a "massive U-turn" to become more dovish in recent months. Other global central banks have followed suit. For that reason, El-Erian thinks that the current bull market could go on for another one or two more years.
The markets have been distorted by central bank activity," El-Erian told CNN's Julia Chatterley on the First Move show Wednesday.
But El-Erian said investors should brace for even more volatility as a result.
El-Erian added that recent economic data from China suggests that the global economy might wind up doing better this year than many had feared at the end of 2018 -- when investors were nervous about a recession and that the Fed may keep raising rates.
Still, El-Erian remains skeptical about how much longer the good times will last.
The market is embracing better fundamentals but the jury is still out about whether that will continue," he told Chatterley.