The value stocks will make a comeback as the economy and earnings improve, said Robert Doll, vice chairman and global CIO of equities at BlackRock.
“A lot of the drag in the last year or so in value has been the financial stocks,” Doll told CNBC.
“We know that when the growth becomes more plentiful and as economy and earnings improve, that will be the case, that’s usually when value stocks begin to outperform.”
Doll said his firm is taking money out of growth-oriented stocks such as technology and into the energy sector where the companies have better balance sheets and leverage to economic growth, and good cash flow in many of the income statements.
If crude prices hold, "the oil companies can do pretty well,” he said.
“Oil is up from $30 to $40, but it’s also down from $145—so we have to look at it from both perspectives. As the emerging markets are recovering, the developed market on the verge of ending their recessions, it’s hard to see oil go down a bunch.”
The higher quality retail sector will also improve, added Doll, as consumers will not compromise their traditional high quality merchandise for lower-quality goods from dollar retailers.
Disclosure:
No immediate information was available for Doll or his firm.
______________________________
CNBC Slideshows:
______________________________
______________________________
Top Oil Companies:
ExxonMobil
Chevron
ConocoPhillips
BP
Royal Dutch Shell
______________________________