S&P Pullback, then 1,000 at Year End: Doll

The S&P 500 index could drop about 10 percent from current levels, but will still finish out 2009 around 1,000, Bob Doll, vice chairman and global chief investment officer of equities at BlackRock, told CNBC Thursday.

"We had a 1,000 target since the beginning of the year for the S&P we're sticking with that," Doll said. "It looked kind of foolish in March, may look pessimistic today with the number in the low nines (900s), but I think we'll see 1,000. But we may see something in the low 800s first."

The U.S. economy will experience a noticeable recovery, but it will be "unfortunately subpar," Doll said.

Overall, "equities are OK, but we're not going to have the normal recovery given all we've been through and the deleveraging overhang," he said.

There will be lots of stock picking as the market trends higher, but not straight up, Doll added.

As for talk of higher interest rates, the speculation is probably more to do with normalization of circumstances than inflation fears, he said.

Worst fears weren't realized and as conditions become more normal, rates can be expected to rise from all-time lows, Doll said.