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Be 'Overweight on Risk Assets': BlackRock's Doll

Monday, 12 Apr 2010 | 10:36 AM ET

Stocks opened higher Monday as investors breathed a sigh of relief after European nations agreed on an aid package for Greece. How should investors be positioned going forward? Robert Doll, vice chairman and chief equity strategist at BlackRock shared his insights.

Trillion Dollar Tips
Curtis Arledge, co-head of US fixed income at BlackRock, and Robert Doll, chief investment officer at BlackRock, discuss their firm's Q2 asset allocation report.

“Our broad strategy has been overweightrisk assets—equities, credit-related fixed income,” Doll told CNBC. “And underweight safe assets—meaning cash and treasury bonds.”

Doll said he expects the economy to continue improving and the risk position is the right way to go.

“One good month [of economic data] doesn’t make it a string, but I think we’ll get a string – all the lead indicators point to that,” he said. “Earnings clearly are doing better, sentiment is improving and there are still a lot of cash on the sidelines.”

Among the developed markets, investors should be overweight the U.S., said Doll.

“You clearly want some higher quality to the extend that new normal might be the case—we want to have companies with strong balance sheets and good free cash flow can gain market share,” he advised. “But on the other hand if we’re in global cyclical recovery, which we are, you’ve got to own some cyclicals too.”

“So you want a mix in the portfolio.”

  • Watch Doll's Previous Appearance on CNBC (Mar. 29, 2010)

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Disclosures:

No immediate information was available for Doll or his firm.

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Disclaimer

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