Investment guru Mohamed El-Erian warns that investors should prepare for slower economic recovery and not to expect “U.S. lawmakers to come to the rescue.”

Allianz’s chief economist warned investors in a recent Financial Times opinion piece that they shouldn't be overly reliant on stimulus support from the Federal Reserve or U.S. lawmakers.

The Newsmax Finance Insider also said gold and government bonds offer little protection against major sell-offs.

"The rollercoaster ride in stocks is combining with multiplying signals of future large fluctuations in derivatives markets to raise doubt about the future," El-Erian said. "It is no longer clear that this is a short-term healthy correction that cleanses markets from excessive risk positioning and strengthens the foundation for further gains," he said.

El-Erian said the government's policy response is becoming less dependable.

"What initially was an impressive policy response underpinned by three notions — "all in," "whatever it takes" and "whole of government" — is proving harder to sustain and not just due to political polarization," he said. "Investors also should not expect US lawmakers to come to the rescue."

Meanwhile, U.S. House Speaker Nancy Pelosi said on Tuesday she hoped to have a coronavirus aid deal with the White House this week, after speaking with Treasury Secretary Steve Mnuchin for about 50 minutes and making plans for further talks on Wednesday.

"I'm hopeful," Pelosi told reporters who asked whether agreement on additional coronavirus relief could be reached this week. Her discussion with Mnuchin on Tuesday was their third conversation in as many days.

"The two went over the provisions of the updated Heroes Act and agreed to speak again tomorrow," Pelosi spokesman Drew Hammill said on Twitter, referring to a $2.2 trillion measure unveiled on Monday by House Democrats.

Pelosi has taken the lead for Democrats in trying to reach a compromise with the Trump administration on a further coronavirus relief bill, Reuters reported.

Pelosi and Senate Democratic leader Chuck Schumer had been pressing for a $3.4 trillion relief package, but scaled back their demands by over a trillion dollars.

• Consumer Confidence Posts Biggest Gain in 17 Years
• Poll: 63 Percent of US Households Hit With Virus Report Financial Hardship