Given the state of the global economy, investors should be underweight equities while favoring selected commodities such as gold and oil for the geopolitical risk, Mohamed El-Erian, CEO and co-chief investment officer of bond fund giant PIMCO, told CNBC on Tuesday.

El-Erian also said that bond investors should concentrate exposures seven years and within because that's what the Fed can secure in terms of the yield curve. He added that investors should be careful of the long end of the yield curve, which is more vulnerable.

(Reporting by Sam Forgione; Editing by Chizu Nomiyama)

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