Bob Doll, vice chairman and chief investment officer for global equities at BlackRock, says stocks will outperform bonds and cash this year — and U.S. economic growth may well hit close to 4 percent.
Profit-taking can take over at any point, Doll observes. At any point in time we could have a pullback … but pullbacks could be short-lived and just be sideways consolidations.
“We do think we’re in a cyclical bull market, so (we would use) pullbacks to add for those who feel they have missed” (the rally), Doll says.
Doll says there’s no question that the pace of stimulus will slow down, but says “we’re getting self-sustaining economic recovery now as well.”
“What I mean by that is, it’s spread to an inventory cycle, we’ve gotten some final demand, we’ve begun to see some glimmers on jobs," he recently told Bloomberg.
"So when the government stimulus goes away if those things are still there, we’ll be just fine.”
Higher taxes can cause people to try to accelerate income into this year rather than next, Doll notes, and maybe that will slow things down in 2011. “The U.S. is clearly outperforming from an economic standpoint,” he says.
After the bear-market low in March 2009, stocks shot up like a NASA rocket. Lately, the trajectory of the gains has been more akin to a Fourth of July bottle rocket.
"The pace and magnitude of the gains in the stock market have moderated as the rally has matured," Larry Adam, U.S. chief investment strategist at Deutsche Bank, tells USA Today.
© 2017 Newsmax Finance. All rights reserved.