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.
“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
Scorecard—What He Said:
- Doll's Previous Appearance on CNBC (Dec. 1, 2010)
More Market Analysis & Opinion:
- Dividend Stocks Better Investment than Bonds: Pros
- Stronger Economy Will Make Stocks Attractive in 2011: Pro
- US Markets, Economy to 'Grind Higher': Stock Picker
CNBC Data Pages:
Thursday's Top Dow Laggards (as of this writing):
Johnson & Johnson
No immediate information was available for Doll or his firm.