My Market and Fed Outlook Now: BlackRock's Doll

JeeYeon Park | @JeeYeonParkCNBC

Published 10:28 AM ET Mon, 16 Nov 2009 Updated 12:06 AM ET Thu, 18 March 2010 CNBC.com

The major indicies are all up more than five percent in the last two weeks. How long will the rally last? Robert Doll, vice chairman and global CIO of equities at BlackRock, shared his market insights.

“Despite the fact that we’ve come a long way in a short period of time, we’re still uncertain what the economic recovery will look like—how subpar will it be,” Doll told CNBC.

“These things have investors concerned. All the liquidity has pushed the market up, but the bears are saying: where is the evidence in the real economy? I think we’re getting it. But I think it will be slow, two steps forward, one step back.”

Federal Reserve chairman Ben Bernanke is expected to speak later today on economic conditions. While investors are keen for signs of how the Fed will remove stimulus measures from the economy, Doll said he doesn’t necessarily expect any market-moving statements.

“Ben Bernanke and the other Fed governors will continue as they did between the last two meetings, to make sure people understand that they’ve got their eye on all these things and that they’re not going to let inflation begin to rear its ugly head,” he said.

“So they’ll keep talking down and keep with a pretty easy policy until they think they need to do the other extreme, but it’s going to take some time."

Meanwhile, Doll said he prefers the industrials and materials sector compared to the consumer areas.

“You’ve got more working in your favor with the global cyclicals, including the recent decline in the dollar and the translation effect,” he said. “You also have stronger demand in many parts of the world—for example Asia and other emerging countries. I wouldn’t ignore the U.S. consumer, but the other area gives you a better play.”