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Doll: Stocks Would Have Made 'Significant' Highs If Not for Trump Chaos

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By    |   Thursday, 18 May 2017 03:34 PM

Nuveen Asset Management's Bob Doll said the stock market could have made "significant" new highs if there was no controversy in Washington.

Doll told CNBC that he expects to see more highs this year, and says Washington uncertainty is not a big negative for market.

Doll said the stock market's gains this year have mostly been about strong earnings gains and the economy.

Doll now thinks if there is tax reform, it will be a watered down, and perhaps just a corporate tax cut as opposed to a sweeping grand plan to change the structure for individuals and corporations.

This definitely takes away the chance of "significant new highs, which were possible with phenomenal earnings we were seeing. Unless earnings are going to decline, I don't think we have big downside," he said.

Doll said he had been expecting a 2018 tax plan all along, but many in the market were looking for a plan by this year.

"I think we've taken some of the upside away. but the probability of [a tax plan] in the last 48 hours has gone down," he told CNBC.

"If I had a choice of tax reform or good earnings, I'd take good earnings...Tax reform is icing on the cake, but it's not the cake."

To be sure, Wall Street rebounded on Thursday from its biggest selloff in more than eight months, with major indexes recovering some of the previous session's steep losses.

Strong economic data offered support, but some investors were still anxious after reports the U.S. President tried to interfere with an investigation into former National Security Adviser Michael Flynn's ties with Russia.

Stocks extended gains late in the session after showing modest increases earlier in the day, Reuters reported.

“This whole bull market is all about panic attacks followed by relief rallies, and this was another one,” said Ed Yardeni, president of Yardeni Research Inc in Brookville, New York. “My hunch is that the Trump impeachment panic attack was a one-day wonder and we’ll move on from there.”

Equity investors are carefully watching events that could help or hurt Trump's ability to implement proposals such as tax reform and deregulation as at least some of the stock market's post election rally has been thanks to those proposals.

"People want to get some clarity on what's going to happen here," said Stephen Massocca, Senior Vice President at Wedbush Securities in San Francisco.

(Newsmax wires services contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

 
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Nuveen Asset Management's Bob Doll said the stock market could have made "significant" new highs if there was no controversy in Washington.
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2017-34-18
Thursday, 18 May 2017 03:34 PM
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