Tags: stocks | bear | market | Bob Doll

Bob Doll: 10 Reasons Why Stocks Won't Fall by 20 Percent This Year

Bob Doll: 10 Reasons Why Stocks Won't Fall by 20 Percent This Year

By    |   Monday, 11 January 2016 06:00 AM

U.S. stocks have gotten off to their worst start in 90 years, but that doesn’t mean equities are going to drop by 20 percent — the standard definition of a bear market.

Bob Doll, senior portfolio manager and chief equity strategist at Nuveen Investments, tells CNBC that any market decline is more likely to be modest, especially as Chinese financial authorities take action to bolster growth.

In August, the sentiment on China was "it doesn't know what it's doing. They're having technical issues around the markets. Their currency is falling. There's the unanticipated devaluation. Commodity prices were going down, and people were concerned they weren't able to control it, and the world would be in a deflationary spiral," he said to CNBC.

His year-end target for the S&P 500 is 2,150, which would mean a 5 percent increase from the 2015 closing.

The benchmark dropped 6 percent during this year's first week of trading, which was the worst since 2011. Friday's closing price was 9.8 percent down from May's record high.

Doll on Thursday released 10 predictions for 2016, including a forecast that Republicans will win the White House.

Bob Doll’s 10 Predictions for 2016
  1. U.S. real GDP remains below 3 percent, and nominal GDP below 5 percent for an unprecedented 10th year in a row.
  2. U.S. Treasury rates rise for a second year, but high-yield spreads fall.
  3. S&P 500 earnings make limited headway as consumer spending advances are partially offset by oil, the dollar and wage rates.
  4. For the first time in almost 40 years, U.S. equities experience a single-digit percentage change for the second year in a row.
  5. Stocks outperform bonds for the fifth consecutive year.
  6. Non-U.S. equities outperform domestic equities, while non-U.S. fixed income outperforms domestic fixed income.
  7. Information technology, financials and telecommunication services outperform energy, materials and utilities.
  8. Geopolitics, terrorism and cyberattacks continue to haunt investors but have little market impact.
  9. The federal budget deficit rises in dollars and as a percentage of GDP for the first time in seven years.
  10. Republicans retain the House and the Senate and capture the White House.
Source: CNBC

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
StreetTalk
U.S. stocks have gotten off to their worst start in 90 years, but that doesn't mean equities are going to drop by 20 percent - the standard definition of a bear market.
stocks, bear, market, Bob Doll
348
2016-00-11
Monday, 11 January 2016 06:00 AM
Newsmax Media, 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