Gold Is Trendless, Don't Expect A Lot From It: Bob Doll

Bob Doll, Nuveen's Chief Equity Strategist, sees strength in the U.S. economy making gold an underwhelming investment and expects that any near-term pullback in stocks will be shallow.

"If the world continues to heal, the U.S. continues to do better than most places, the dollar continues to rise, I don't think that's an environment where we can expect a lot from gold," Doll told CNBC's "Squawk on the Street" Thursday. "It's a commodity, it bounces all over the place, but I think it's fairly trendless."

(Related: Will Gold End the Second Quarter Higher or Lower?)

On stocks, Doll said "it is unbelievable how long this has gone on without a pullback. We're going to correct at some point, but the point is that the economy is getting better, the Fed is in our court, earnings are going to be OK, the stock market is going to go higher."

(Read More: Gold Slips as Calm in Cyprus Saps Interest)

"I don't think (buying stocks on dips) will end. When we get a pullback, there are so many people on the sidelines, I don't think it will be much of (a correction), I think it will be shallow," he said. "You gotta keep your seatbelt on and your shoulder harness buckled, because we will have bumps."

Doll said that since the rally has been led by defensive stocks, cyclicals are likely to outperform in the wake of a market pullback. "Cyclicals, in a strange way, if we have a pullback will go down less," he said.

On the recent moves in bonds, Doll said that recently deflation threats had been shrinking, but more recently "we've gotten this retest of deflation," driven by Cyprus and other areas of weakness around the world. "interest rates are headed irregularly higher."

(Related: Rally Like a Broken Record as S&P Scores New High)

"Cyclicals in general, I would look to buy them, if not here, at least on weakness," he suggested, pointing to Caterpillar and Alcoa as "higher on the list" of his stocks to buy, despite relative weakness in earnings. His strategy would be to use dollar cost averaging—gradually building positions over time—into the second quarter.

— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul