Stocks are likely to continue rising, underpinned by fundamental factors as well as by lack of alternatives to park money, but investors may pause for breath, Bob Doll, vice chairman of BlackRock, told CNBC Tuesday.
Short-term rates are near zero while the US economy is improving, "where are people going to put money?" Doll said.
"I think that's another argument for (saying that) the path of least resistance is up," he added.
Some analysts have said stocks are likely to suffer a correction because all the good news such as earnings beating expectations and the recovery being a strong one have been priced in.
But Doll disagrees.
"I don't think we're going to have any significantly downward action," he said, but added that a pause that "refreshes" momentum in the market could take place any time.
Global cyclical stocks should be present in any investor's portfolio while the healthcare sector is "an interesting possibility" said Doll.
He added that he is tempted to buy integrated oil companies when looking at their valuations.
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