Given some of the data getting less bad, mid-terms coming up and the possibility of more equity-friendly policies, stocks should be able to grind higher, said Bob Doll, chief equity strategist at BlackRock. He shared his market outlook.
“Add to that the Fed’s comments last weekand you get a little more pricing and more real growth—that’s more nominal growth—there’s nothing better for stocks than nominal growth,” Doll told CNBC.
He noted that in the past, the Federal Reserve said they would add more “ammunition” (quantitative easing) if things got worse in the US economy. But during the meeting last week, the Fed said it would apply the logic if things don’t get better.
“That means the probability has gone up a bunch and in the near-term, that’s got to be positive for equities,” he said. “You know what it’s done to the dollarand to the price of gold—it’s likely positive for risk assets and the hope has to be that it all translates to better news for the real economy and the nominal economy.”
Scorecard—What He Said:
- Doll's Previous Appearance on CNBC (Sept. 21, 2010)
More Market Views—Across the Board:
- Roubini: More Global Financial Crises Coming
- Why Equities Will Keep Rising: Strategist
- Forget Low Volume—Stocks Are Underbought: Manager
CNBC Data Pages:
Tuesday's Dow Laggards (as of this writing):
No immediate information was available for Doll or his firm.
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