Investors should be paying more attention to the uncertainty being created by the turmoil in Ukraine and the Mideast, Mohamed El-Erian told CNBC.
The financial markets believe the two crises are containable, but that might fleeting, the former Pimco co-CEO said in a "Squawk Box" interview.
Even if there are spillover effects from these events, El-Erian said, the consensus on Wall Street says it doesn't matter—earnings are strong and the Federal Reserve is still supporting stocks.
He warned there's "notable complacency" among traders, but that complacency has been rewarded because many of the recent geopolitical crises have proved to be buying opportunities. "Because the Fed is standing by the markets, there's [been] a reason to fade any sell off."
"But the problem is if you step back the process is getting worse. It involves nonstate actors, which means it's much harder to contain," he said. "Unlike the old days, there is no outside power that inform, influence, or impose outcomes."
