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Stock Markets Will End the Year Higher: Bob Doll

Markets are likely to end the year higher and investors need some strong, blue-chip stocks in their portfolios, to counteract the volatility shown by cyclical shares, Bob Doll, global chief investment officer of equities at BlackRock, told CNBC Tuesday.

"Markets never go in one direction without pauses in another direction. I think markets will end the year higher than where we are… but there's going to be a pullback at some point," Doll told "Squawk Box."

He reiterated his view that the S&P 500 will hover around 1,000 but admitted it could go slightly higher.

"1,250 is sort of the target I would have for the end of this cyclical bull market. We still have some headwinds. We're not going to have a normal 6-8 percent growth rate off the recession."

In the healthcare sector, Doll likes WellPoint and Amgen, while in the energy sector he repeated his preference for Marathon and National Oil.

"I still like technology," Doll said, adding "IBM I think is a misunderstood company."

Slow growth over the next years will be part of the challenges that investors will have to face, as the economy is likely to advance by between 3 and 4 percent a year instead of surging 6 percent as it happened in the past when getting out of recessions, Doll said.

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