Nuveen Asset Management’s Bob Doll expects 2014 economic growth will be “broader and stronger” but remain moderate for the U.S. and the rest of the world.
But Doll, the former top strategist at BlackRock, expects stocks to fall 10% before ending the year in the green.
In a new note to clients, Doll writes that “macroeconomic risks are diminishing as economies improve, which may help reduce fear and strengthen confidence.”
He sees the U.S. economy expanding by 3% this year.
“U.S. fiscal drag is lessening, Europe is emerging from recession, Japan’s deflationary headwinds are diminishing, and China is showing signs of stabilisation,” he writes. “Improving sentiment for U.S. corporations, along with strengthening consumption, should lead to an increase in capital spending and a relatively stronger growth trajectory.”
As is his custom, Doll makes 10 predictions for 2014. Here they are: