Tags: bob doll | oil | china | 2016

Bob Doll: 'We're Going to Be OK' in 2016 as Oil, China Will 'Stabilize'

Bob Doll: 'We're Going to Be OK' in 2016 as Oil, China Will 'Stabilize'
Bob Doll (Twitter)

By    |   Monday, 28 December 2015 05:20 PM


Nuveen Asset Management's Bob Doll predicts that two volatile factors that swayed markets this year, namely oil prices and China, will calm next year — and we’ll be just fine.

"My view is oil is going to stabilize at a low level, and we will see some of the consumer dividend get spent next year. So, the consumer's going to be a bit better, oil's going to be less of a headwind, so we're going to be OK," the firm's chief equity strategist told CNBC.

"Earnings are going to be OK, China is stabilizing; that was a big bugaboo in 2015," he explained.

“Corporate earnings have been hurt by a rise in the dollar, which has gained more than 8 percent against a basket of major currencies. Growth concerns in China also have weighed on financial markets this year, especially in oil prices. U.S. crude prices have fallen about 40 percent this year,” CNBC explained.

However, China remained volatile Monday. China's Shanghai Composite Index retreated 2.6 percent, the biggest one-day drop since Nov. 27. Investors are fretting that the end of a six-month ban on sales by shareholders with stakes of 5 percent or more in Chinese companies will unleash another wave of selling just as reforms to the initial public offering system see a raft of new listings dilute demand for existing equities, Bloomberg reported.

WTI was 3.5 percent lower at $36.77 a barrel, after jumping 9.7 percent last week. Iran plans to add 500,000 barrels a day of exports one week after sanctions are lifted, said Rokneddin Javadi, head of National Iranian Oil Co., according to Shana news agency.

Gold for immediate delivery declined 0.5 percent.

But not all experts see such a bright horizon.

Robert Kiyosaki, best-selling author of “Rich Dad, Poor Dad,” warns that stock market manipulation may result in a crash bigger than in 2007.

Kiyosaki predicted in his 2002 book “Rich Dad’s Prophecy” that the biggest market crash would come in 2016.

“Well, that’s a month from now. I hope that doesn’t come true but if you look at it, China is now going down, Europe is going down, Japan and South America are going down so it looks like 2016 might come true,” Kiyosaki told Rappler.com in Manila at an event to promote his new book, “Second Chance: For Your Money, Your Life and Our World”

“In the first 10 years of the 21st century, we’ve had 3 major crashes, each bigger than the 1929 crash that caused the Great Depression. So everything I wrote in “Rich Dad, Poor Dad” is now coming true,” he said.

Kiyosaki explained that each time a crash happens, the Federal Reserve simply prints more money to prop up the market, each more than the next, which is eventually setting it up for a major crash, Rappler reported.

For the next 20 years, until 2035, the world might be in a depression, Kiyosaki predicted.

“The underlying economy, the gross domestic product, is weak but the stock market is high," he said.
  

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Nuveen Asset Management's Bob Doll predicts that two volatile factors that swayed markets this year, namely oil prices and China, will calm next year - and we'll be just fine.
bob doll, oil, china, 2016
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2015-20-28
Monday, 28 December 2015 05:20 PM
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