Tags: bob doll | stocks | drop | adults | trump | administration

Strategist Bob Doll: Stocks May Drop If 'Adults Leave the Trump Administration'

By    |   Monday, 09 October 2017 04:56 PM

Economic guru Bob Doll warns that any resignations or departures from the Trump administration could just be enough to send stocks into a tailspin.

"My view is corrections are non-predictable and random but after the fact we always know why," Nuveen Asset Management's chief equity strategist told CNBC.

"Catalysts could be maybe earnings aren't as good as we think. Maybe some adults leave the Trump administration. Maybe inflation as we saw a hint of the Friday employment report and wages begin to move higher," Doll told CNBC.

Doll's reference to adults leaving the White House refers to a nasty weekend social media battle between the president and Sen. Bob Corker.

Doll says earnings have acted as a stimulus for the market's rise to new highs, and he doesn't see why that should stop.

"Earnings should be reasonably good along with economic statistics," he said. "We've got, of course, that hurricane effect we saw in the jobs report last Friday. That could affect some earnings. It could be the right excuse when companies don't make it."

Investors should stick with sectors that have done well because of earnings, Doll suggests.

"We're seeing improvement in financials," he said. "Selected tech — I don't think it's just a blanket. Health care still has a good tail wind in terms of earnings, and valuations are not horribly stretched."

As for the weekend mudslinging, Corker hit back against Trump after a series of Trump tweets attacked the Tennessee Republican, the Associated Press reported.

It's an extraordinary back-and-forth bashing on social media between a Republican president and a senator from his own party.

Here's what Corker is saying: "It's a shame the White House has become an adult day care center. Someone obviously missed their shift this morning."

President Donald Trump on Sunday tore into Corker, taunting the Tennessee Republican — and critic of the president — over his decision to not seek re-election in 2018 with a tweet that charged he "didn't have the guts to run."

In a mini-tweet storm, Trump proclaimed that Corker decided against another run because he didn't get Trump to endorse him — and said he was standing in the way of the administration agenda.

Trump accused Corker of being "largely responsible for the "horrendous" nuclear deal with Iran. But it was the Obama administration that negotiated that agreement.

He doubled down on blaming Corker late Sunday afternoon:

Trump’s recklessness threatens World War III, Sen. Bob Corker, R-Tenn., told The New York Times Sunday night.

Corker, the Republican chairman of the Foreign Relations Committee, told the Times he was distressed about having a president who acts "like he's doing 'The Apprentice' or something" and treating the White House like a "reality show" with threats to other nations that could send the U.S. "on the path to World War III."

"He concerns me," Corker added. "He would have to concern anyone who cares about our nation."

(Newsmax Wire Services contributed to this report).

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Economic guru Bob Doll warns that any resignations or departures from the Trump administration could just be enough to send stocks into a tailspin.
bob doll, stocks, drop, adults, trump, administration
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2017-56-09
Monday, 09 October 2017 04:56 PM
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