Robert C. Doll, vice chairman and global chief investment officer for equities at BlackRock, says he thinks the American market is likely to remain relatively volatile for an extended period — and then resume its surge.
However, Doll advises long-term diversified investors to ride out the storm and even increase their equity holdings.
"Keep your shoulder harness on, and your seatbelt secured, and your life should be OK," Doll says.
In addition to fears brought on by the flash crash and the problems in Europe, Doll told the New York Times that the bear market in China, the threat of economic slowdown there, and domestic issues in the United States are giving investors reasons to feel frightened.
Doll sees two other “scenarios” as possible, but much less likely.
The first is a global meltdown, with the Greek crisis morphing into “Lehman II.”
The second is a quick resumption of the roaring bull market that took the S&P 500 Index up 80 percent. However, Doll says there are too many problems for this to be very likely in the next month or two.
Representatives from the United States and China took opposing views on the importance of the euro zone’s financial problems, ABC News reports.
U.S. representatives believe that Europe’s debt crisis will have minimal impact on global growth. China took a more pessimistic stance, saying that Europe’s problems will impact demand for Chinese imports and that other regions will suffer as well.
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