Stocks rose Monday following a jump in October retail salesand a handful of M&A news. Robert Doll, chief equity strategist at BlackRock, shared his outlook.
“We’ve been so macro-focused that we’ve lost sight of the fact that despite a weakish economic recovery, corporate America’s done a pretty good job,” Doll told CNBC.
“Revenue growth is improving, earnings growth started improving before that...companies are raising dividends, buying back stocks, engaging in M&A and some are actually investing in their businesses.”
Doll said investors should have some exposure to global cyclicals, industrials, energy, selective techs, retailers and media stocks. In addition, he advised looking into health care and telecom names as a hedge against a weak recovery.
“We’re suffering a little indigestion: the China tightening, renewed concerns about credit in Europe, the hangover from the election and QE2 (Fed’s quantitative easing) — these sorts of things are weighing on the market,” he explained.
“The dollar’s oversold, commodities have extended a little far, so I think we’re taking a pause, but I don’t think the cyclical bull market’s over.”
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Scorecard—What He Said:
- Doll's Previous Appearance on CNBC (Oct. 11, 2010)
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Market Analysis and Advice:
- 9 Multinational Picks For Your Portfolio
- Stocks Are 'Good Long-Term Investment': Strategist
- Bush Tax Cuts: What to Do if They Expire
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CNBC Data Pages:
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CNBC Slideshows:
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Major Earnings This Week:
Home Depot
Wal-Mart
TJX
Target
Dell
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Disclosures:
No immediate information was available for Doll or his firm.
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