Doll: Market May Pause but Will End Year Higher

Stocks are entering a corrective phase and levels of high volatility are likely ahead, Bob Doll, Vice Chairman and Global Chief Investment Officer of Equities at BlackRock, told CNBC.

"The market looks to me like it's a bit tired...so we might take a pause after a sort of 40 percent run up, I don't think that would be out of the ordinary at all. I still believe we'll end the year higher that where we are, but maybe we’ll take a pause first," BalckRock's Doll told "Squawk Box."

It is "extremely unlikely" that prices will retreat to their March lows, he added.

US stock index futures fell Monday morning, while in Europe major indexes were down between 1.5 percent and 2 percent, with worries over the length and shape of the recession resurfacing.

"We have come from the abyss and the market's run is a bunch about there's not going to be a depression most likely and as a result that sigh of relief. We still need more development of good news," Doll said.

"It's at least a couple of years out before we see that more normalised return (on equity), 2011, maybe 2012," he added.

The liquidity pumped into the markets by central banks so far has helped financial markets rise from their lows, but more evidence is needed that it makes a difference in the real economy, according to Doll.

"We still have issues about the financial system, the banking system, it’s still not operating normally. Much better than it was. I think we have to be careful about reading too much good news into the less bad news," he said.