Tags: BlackRock | doll | US | Austerity

BlackRock Strategist: Here Comes US Austerity

Thursday, 28 Jul 2011 08:57 AM

Debt ceiling decision or not, the United States is soon to experience the full meaning of the word “austerity,” warns Bob Doll, top stock picker at equity giant BlackRock.

As the competing sides in Washington fought to assemble spending cut packages in order to raise the debt ceiling within days, the final outcome would be less federal spending, Doll told CNBC.

“We’re inevitably heading in an austerity direction,” he said. “We’re debating where and how much, but we’ll get there. None of us will like the way we’re getting there, but we’ll get there.”

"We’re going to have a massive circus," he said. "It’s not going to be fun. In the 12th, maybe 13th hour we’ll get something done and we move on. Hopefully, it will be something substantial. If not, we’ll have to do something substantial down the line," Doll said.

Nevertheless, Doll said he had not sold stocks — “zero,” in his words — and did not expect that plan to change regardless of the moves in D.C. Earnings had been good so far, he pointed out.

Doll mentioned that three-quarters of companies reporting so far have beaten expectations, according to Thomson Reuters data.

Better earnings would be welcome, since (or perhaps as a result of them) a third round of Fed easing is unlikely, says NYU economist Nouriel Roubini.

The Fed will stay at virtual zero on the benchmark rate for some time, but don’t count on renewed easing, he told an audience in Shanghai.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
Debt ceiling decision or not, the United States is soon to experience the full meaning of the word austerity, warns Bob Doll, top stock picker at equity giant BlackRock. As the competing sides in Washington fought to assemble spending cut packages in order to raise the...
BlackRock,doll,US,Austerity
246
2011-57-28
Thursday, 28 Jul 2011 08:57 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved