The Bush tax cuts must stay in place and any repeal of them will throw the U.S. economy back into a recession, says Bob Doll, vice chairman of asset management firm Blackrock.
“Extension of the Bush tax cuts has to come front and center,” Doll tells CNBC.
Renewing the tax cuts, especially by Jan. 1, is vital for the economy.
“I think a double-dip recession will have to be something we’ll have to talk about,” Doll says if the cuts aren't renewed. “We need to take some action on that.”
The U.S. economy is improving and stock prices will look better going forward, Doll says.
On a longer term, economic performance will move markets, and the economy in the U.S. is "slowly but surely continuing to improve."
"Eventually the economic improvement should continue and carry the day," Doll says, adding he's looking less at which sectors hold the best buys and instead, which companies are showing healthy cash-flow figures.
"I'd rather own a company with no dividends and lots of free cash flow."
Overall, the global economy continues to improve, and while uncertainty faces investors worldwide, the threat of a double-dip recession appears less and less likely.
"I don't think that there will be a double dip," says Robert Zoellick, president of the World Bank, according to Reuters.
"But, what I would say is this, we are far from finished ... I think that there is a problem with confidence."
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