US Markets

The bull market has more to run before the Fed hits the brakes on growth, Bob Doll says

What's working: Bob Doll's best bets for investors
VIDEO4:1704:17
What's working: Bob Doll's best bets for investors

The bull market has more to run before the Federal Reserve hits the brakes on growth, strategist Bob Doll told CNBC on Monday.

"We need the excess to show up for somebody to stomp on it, usually the Fed, and that's not in sight," Doll told "Squawk Box." "If we get a head of steam in growth, ironically, it could shorten the cycle. But I think we've got a long time before we have to worry about that."

Doll said financial stocks are experiencing an especially good run on hopes of a "better economy, higher interest rates, [and] some rollback in legislation." The strategist said he favored "big global players," such as Bank of America and Goldman Sachs.

"Financials started doing better on Monday, accelerated post the election, and while maybe a little ahead of themselves in the short term, I assume they're going to do well this year," Doll said.

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"Stocks that look like bonds did phenomenally well during the stagnant growth period," Doll said. "Utilities, a perfect example. Some of the telecom names, some of the consumer staples. They're not cheap to begin with."

Once loved for their safety, yields, and low volatility levels, "they have underperformed since the middle of last year," the strategist said. "[And] there's more underperformance to come."

Bob Doll: What Wall Street wants from Trump
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Bob Doll: What Wall Street wants from Trump

But markets will soon need more clarity from President Donald Trump on his legislative priorities as he begins his first 100 days in office, Doll said.

"Wall Street love[s] the idea that we have a pro-growth president, but we had a press conference, we had an inaugural address, and he really didn't talk about those issues, and I think that's caused a little bit of a sag," Doll said.

Doll said Trump will have to work with congressional Republicans to centralize the priorities of the Republican agenda and cut through the noise.

"I think the market's saying, 'I made a list: trade deals, tax cuts, tax reform, repatriation, Obamacare, Supreme Court, immigration, ISIS, fight the press, infrastructure,'" Doll said. "What are your three most important ones? What are you going tackle first? You can't do them all."

The president has time to gather his thoughts, but it should be his top priority to give Republicans on the Hill something to rally behind, Doll said.