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Why Markets Are Grinding Higher: BlackRock's Doll

Thursday, 9 Dec 2010 | 11:19 AM ET

Stocks traded mixed Thursday following an encouraging weekly jobs report. Where should investors be positioned going forward? Robert Doll, chief equity strategist at BlackRock, shared his insights.

Reaping Returns
Hunting for yield, with Joe Moglia, TD Ameritrade; Robert Doll, Black Rock; and Gary Kaminsky, "Strategy Session."

“So many uncertainties we’ve had are slowly getting resolved,” Doll told CNBC.

“Markets hate uncertainty, so therefore, the resolution of them brings the risk premium down, which means prices go up—and that’s why you’re seeing the stock market slowly but surely grinding higher.”

Doll said companies with positive free-cash flow are ultimately going to be the winners in the marketplace, especially in an environment where investors are hunting for yields.

“I still like the global cyclical side of things: selected materials, industrials, energy, cyclical technology names, some of the consumer discretionaries, specialty retailers and media,” Doll advised.

“The conundrum for me is the financial sector and the model for banks—that’s the question mark,” he added. “But the cyclical area will continue to be the source of positive earnings surprises.”

  • 20 Key Financial Stocks in Real Time

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Scorecard—What He Said:

  • Doll's Previous Appearance on CNBC (Dec. 1, 2010)

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More Market Analysis & Opinion:

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CNBC Slideshows:

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CNBC Data Pages:

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Thursday's Top Dow Laggards (as of this writing):

Du Pont

Pfizer

Johnson & Johnson

3M

Merck

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Disclosures:

No immediate information was available for Doll or his firm.

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Disclaimer

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