Investors digested a mixed bag of earnings on Wednesday and left people wondering if the economy is still on its way to a recovery. Bob Doll, vice chairman and global CIO of equities at BlackRock, shared his market outlook.
“Markets treated [the earnings news] well until the last couple of days,” Doll told CNBC.
“We’re getting some guidance for companies that say businesses are improving, but we need to see more of that. I think the markets are running just a little tired.”
While earnings results are seeing improvements based on revenue growth, Doll pointed out that much of it is around inventory replenishment—and not enough around final demand.
“That’s what we’ll need to see kick in, and hope we do in the fourth quarter.”
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In the meantime, Doll said although the markets are slightly overbought, “these things can correct themselves by going sideways for a while. They don’t have to go down.”
“As long as we have this sluggish recovery, we’re going to have authorities fighting to get growth coming back, in this period of slowly but surely improving growth,” he said.
He doesn't foresee a double-dip recession happening. "There will be moments where we wander, but I do believe that we’re on a slow but noticeable improvement.”
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No immediate information was available for Doll or his firm.