Bob Doll says the recovery is the real deal and that you better jump on board the risk asset train before you get left behind. He says the March 2009 lows are here to stay and the withdrawal of government stimulus will actually prove the recovery to be quite real. This is a transcript of his market newslwtter:
“In our view, March 2009 marked the primary low for this bear market. We are a year past that now and, barring a significant double dip in the economy, the odds point to 2010 as a positive year for equities and other risk assets. Some argue that the recovery process is artificial, mainly reflecting the impact of government intervention, and that the economy’s day of reckoning will come as stimulus is withdrawn. Skepticism about the durability of a recovery is common following recessions, especially after a severe one, but recent history suggests that the world economy almost always adapts and returns to growth. Minus any significant negative external shocks, we believe this recovery should follow suit.”
Probably even more surprising are his comments about the US job market:
“In fact, we would argue that the second quarter could bring as many as 300,000 new jobs given that the average work week, temporary hiring, productivity and profits—four leading indicators of job growth—have all moved up.”
Bob Doll is the Chief Equity Strategist at BlackRock.
Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)
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