The 4% decline in the Dow Jones Industrial Average in January could portend worse things to come for the stock market and the economy, Mohamed A. El-Erian, co-chief investment officer of PIMCO, recently wrote in a Bloomberg News column.

The stock market has overpriced an “orderly” withdrawal of stimulus money, the government’s success in restoring growth, and a rebound in bank lending, jobs, consumer spending and the role of the U.S. in the global economy, El-Erian said.

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