Eternal optimist Bob Doll of BlackRock thinks that people are a little too nervous about the health of the U.S. economy.
And he drives this point home in his Weekly Investment Commentary.
In the United States, we believe the current economic angst is misplaced, although uncertainty over the fiscal cliff issues will help ensure that markets remain turbulent. Our view is that some sort of compromise should materialise, which should help the US economy remain on stable footing.
To the surprise of nobody, Doll is bullish on the market.
From a fundamental perspective, valuations are attractive, corporate earnings remain solid and technical indicators suggest that markets may be poised for the next “risk on” phase. In all, we believe that the cyclical bull market for stocks remains intact, but the next up leg will likely not occur until we see more policy response.
Despite his bullish outlook, Doll notes that the fiscal cliff and policy responses looming over the market cause some of the turbulence and will likely continue to do so.