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Strategist Bob Doll 'Cautious' of Stocks as 'Sentiment May Be Too High'

Bob Doll (Twitter)

By    |   Friday, 07 April 2017 08:21 AM

Respected strategist Bob Doll warns savvy investors that he is “cautious” about the stock market and fears a “setback” looms.

Doll told CNBC that he doesn't see a substantial pullback in the horizon, but highlighted several recent economic and political developments that give him pause.

"We think economic sentiment may be too high and elevated confidence may make investors vulnerable to downside economic surprises. To be sure, we are not expecting a significant economic slowdown, but the nearly non-stop pace of positive economic data is unlikely to continue," Doll warned.

"At some point, a setback will likely be triggered by a manufacturing decline, soft oil prices, weakening data from China or some other factor, which could spark a risk-off phase," the Chief Equity Strategist for Nuveen Asset Management said.

As for the markets' performance year to date, Doll said, "It was big [cap] that led small [cap]. It was growth that led value. It was defensive that led the cyclicals. That isn't where we were last year, nor is it a sign that we're going straight up. It's just a little bit of a warning sign."

Others are more optimistic about the market's future.

Author and financial adviser Christopher Whalen tells Newsmax TV that savvy investors can still find worthwhile investments despite being bombarded with obstacles all over the market.

“We have bubbles all over the place — commercial real estate, the auto sector,” he told Sunday’s “The Income Generation Show.”

“I always tell people to invest in what they know, invest in their own businesses No. 1 but I think in terms of securities markets, there's still a lot of value there,” the chairman of Whalen Global Advisors said.

“It's just a question of doing your homework and finding stocks and bonds that represent a disruption, if you will, in the norm," said the author of "Ford Men: From Inspiration to Enterprise."

Meanwhile, David Horowitz, author of the best-selling book "Big Agenda: President Trump's Plan to Save America," also told Newsmax TV that the market rally since Republican Donald Trump won the election has more room for gains as the president pushes his pro-business agenda.

“There's more upside. Starting from when he was president-elect he started this stock market boom,” he told Sunday's “The Income Generation Show.”

“There will be corrections. There are going to be setbacks along the way like the healthcare which they hurried too fast. If you're looking over the long term of this administration I think the stock market is going to love Trump.”

The S&P 500 has risen 10 percent since the Nov. 8 election after reaching a record high in early March. The rally stalled as Republican lawmakers withdrew proposed changes to the country’s healthcare system, casting serious doubts about the growth agenda pledged by Trump, whose job approval rating keeps falling.

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Respected strategist Bob Doll warns savvy investors that he is "cautious" about the stock market and fears a "setback" looms.
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Friday, 07 April 2017 08:21 AM
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