Strategist Bob Doll: Investors should stay in equities despite recent big market swings

  • Stocks should continue to rise despite near-term volatility in the market, strategist Bob Doll says.
  • Stocks were well off their session highs early afternoon Friday after falling Thursday.
  • Despite Thursday's losses, the Dow and S&P 500 are still higher for the week and the Nasdaq is just below breakeven.

Stocks should continue to rise despite near-term volatility in the market, strategist Bob Doll told CNBC on Friday.

"Volatility is normalizing; PE's are normalizing," Doll, chief equity strategist at Nuveen Asset Management, said on "Power Lunch." "We're no longer in that era of financial repression."

Volatility refers to the amount of uncertainty in the size and direction of changes in a market and is typically measured by the deviation of returns.

Stocks were well off their session highs early afternoon Friday.

Stocks fell sharply Thursday, with the Dow Jones Industrial Average falling more than 300 points. Despite Thursday's losses, the Dow and S&P 500 are still higher for the week and the Nasdaq is just below breakeven.

Concerns that the Federal Reserve under Jerome Powell might raise rates more than forecast helped fuel last week's declines. The Fed hiked rates three times this year, and one more is expected in December.

Wednesday and Thursday of last week saw the heaviest selling, when the Dow plummeted nearly 1,400 points, or more than 5.2 percent, in the two sessions.

President Donald Trump has repeatedly slammed Powell in recent weeks, saying the Fed is increasing rates too quickly and that stronger economic growth won't lead to problematic inflation.

Doll said Powell should keep an eye on the market but shouldn't concern himself too much with stock swings. "If we end down a double-digit number, [then] they'll have to ask the questions why."