CNBC Stock Blog

Economy to Grow Below Trend for Several Years: BlackRock's Doll

Stocks opened lower Monday then pared losses, following last week’s sharp decline, as investors braced for the next batch of earnings and economic data. Bob Doll, vice chairman and chief equity strategist at BlackRock, shared his outlook.

“We have to remember that we had a 10 percent up-move in equities from early July to early August and we’ve corrected a little less than half of that,” Doll told CNBC.

“We have to recognize that we’re in a deleveraging world. And while we leverage up, we were able—for years—to grow above trend at 3.5 percent real.”

Doll said the economy is in a period where it will grow "below trend" for several years.

“We'll average 2 [percent] over the next few years—unlike 3.5 before the crisis,” he said.

Scorecard—What He Said:

  • Doll's Previous Appearance on CNBC (Aug. 10, 2010)

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Major Earnings This Week:

Home Depot

Wal-Mart

Target

Dell

Hewlett-Packard

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Disclosures:

No immediate information was available for Doll or his firm.

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