Tags: Doll | bullish | US | stocks

BlackRock’s Doll Still Bullish on U.S. Stocks

By Dan Weil   |   Tuesday, 10 Apr 2012 12:45 PM

Some investors have turned fearful as the Standard & Poor’s 500 Index has dipped more than 3 percent during the past week.

But Bob Doll, chief equity strategist at BlackRock, the world’s biggest money manager, remains bullish. While the correction could extend to 7 percent, stocks haven’t yet reached their highs for the year, he says.

Even before Friday’s disappointing jobs data, “the market was acting a little tired,” following a 30 percent surge since October, Doll tells Yahoo. “We could have a consolidation here, which would be very much overdue in some sense."

Editor's Note: Wall Street Insider: The System Is Rigged

So why is Doll still optimistic?

“You still have a positive monetary backdrop; still have fundamentals not great but good enough; still have sentiment very negative, with most people very underweight equities; and still have valuations not extended even after the [recent upward] run," he says.

While the Federal Reserve may not implement another round of quantitative easing, interest rates remain near zero, Doll points out.

How should investors react to the pullback?

"I'd advise people not to be faint of heart and on the pullback do some buying," Doll says. He particularly recommends healthcare services, technology, and energy stocks.

Some other experts share Doll’s view of the market.

“We’re in a temporary slowdown,” James Swanson, chief investment strategist of MFS Investment Management, tells Bloomberg. “The market has come a long way, but it is not overvalued and earnings will continue to come back.”

Editor's Note: Wall Street Insider: The System Is Rigged


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