The Dow rose on Tuesday, continuing a winning streak in the last nine out of 10 trading days. How should investors be positioned and where are the best sectors to invest? Bob Doll, vice chairman and chief equity strategist at BlackRock, shared his insights.
“Not that we don’t have our problems, but we have more positives than negatives," Doll told CNBC.
"Job growth is right around the quarter and that will be the confirming sign for this rally in my view."
Doll said he sees some self-sustaining mechanisms for growth in the economy and does not expect a double dip.
“The inventory cycle has turned, manufacturing is beginning to do better, exports are doing well, businesses are beginning to spend some money, and we’ve turned the corner,” he commented. “I don’t think we’ll have a double dip, barring some exogenous event we don’t know about.”
In terms of investing, Doll said he likes health care due to the fading uncertainty in the sectorand because more people will have coverage, resulting in unit growth for some companies.
“Some of the defense names have lagged—the Northrops , Raytheons of the world,” he also suggested.
“You also have to own some cyclicals even on the consumer side," he added. "Target and TJX would be our favorite names there.”
More Views on Health Care:
- How Health Care Bill Will 'Destroy' Individual Markets
- Small-Cap Stocks and Health Care Sectors to Watch
- Markets Will Rise—So 'Buy Health Care'
CNBC Data Pages:
Cramer's 12 Stocks to Play the Recovery
No immediate information was available for Doll or his firm.