Two months ago while stocks were steadily rising, BlackRock’s Bob Doll worried that a correction on stocks could come but advised to remain bullish on the market.Now, Doll believes that correction is occurring but also believes it should be “shallow.” He sees a short term correction of around 5% to 7%, which has been common since the bull market began in 2009.
Since Doll feels that fundamental macro conditions have not changed enough to warrant a downgrade in equities, he believes that “share price turbulence is more likely to reflect the consolidation of prior gains rather than the start of some sort of large downturn.”
“Over the longer-term, we continue to believe that markets will be headed higher, but would caution that gains will be harder to come by than they were late last year and early in 2012. It is hard to deny the improvements we have seen in the global macro backdrop over the last several months.”
So even though you may want to panic and fear that four consecutive down days in equities will become a continuing trend, Doll has a more optimistic opinion on the market.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.