If a recession does occur, Doll thinks the index could fall as low as 1,010, although he does not think it will a very long downturn.
“If we have a recession, I think it’s a shallow one because the deep cyclical parts of our economy that take us down a lot are already in the basement—housing, autos, non-residential construction," Doll said. "We're not going to have huge drops in those, and they’re the things that take us down in a recession. If we have a recession, I think it’s a shallow one.”
Although recent economic data have been in the doldrums and the unemployment rate hovers at 9.1 percent, business is doing OK, Doll said. CEOs remain concerned about the future, the absence of political leadership and lack of confidence.
By looking to overseas markets, taking advantage of the weaker dollar and managing costs tightly, companies have been able to post positive earnings despite weak economic growth. In the first half of this year, real GDP was up 1 percent,while corporate earnings were up 17 percent.
"I'm glad I can invest in companies," Doll said. "I'm glad I don't have to invest in the economy."
WATCH:Goldman Economist Weighs Chance of Recession
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