GO
Loading...

Markets Are Overbought — But Drop Not Likely: BlackRock's Doll

Wednesday, 21 Oct 2009 | 11:51 AM ET

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.

Bob Doll's Market Insight
Bob Doll, vice chairman and global CIO at BlackRock, shares his market insight.

“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.”

CNBC Data Pages:

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.”

More Market Intelligence:

______________________________
CNBC Slideshows:

______________________________

______________________________
CNBC's Companies in the News:

State Street

Berkshire Hathaway

General Electric*

Comcast

  • GE, Comcast Keep Options Open Amid NBC Deal Talk

*GE is the parent company of CNBC and CNBC.com.

______________________________

Disclosure:

No immediate information was available for Doll or his firm.

______________________________

Disclaimer

  Price   Change %Change
BRK.A
---
CMCSA
---
GE
---
STT
---

Featured