Bob Doll, Blackrock`s chief market strategist remains firmly bullish on the recovery though many risks remain. In his latest strategy note Bob Doll highlighted several of the risks facing the stock market at this juncture, but maintains that equity markets have largely priced these risks in:
“All of this is not to say that the economy and the markets will experience smooth sailing from here. In recent weeks, we have been highlighting some of the down-side risks, including ongoing credit-related issues (chiefly in the euro region) and the possibilities of premature policy tightening (chiefly in China). To these, we would add a slowdown in the rate of economic growth in Asian economies. These markets have been key drivers of global economic growth in recent years, but have been foundering a bit over the last six months. Additionally, we remain concerned about protectionist sentiment from Washington, DC. In all, equity markets have not been overly concerned about all of these risks (an appropriate view, in our minds), but these are trends that continue to bear close monitoring.”
Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)
Despite the risks Doll says the U.S. recovery is coming along well and the recession is long behind us. The jobs market is healing and the end of government stimulus is no longer a fear. He expects full blown expansion to resume in the coming year and that this environment will continue to reward investors who are taking risks.
No comments:
Post a Comment