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From Kirsten Bischoff, Opalesque New York:
In his weekly investment commentary, Bob Doll, BlackRocks Chief Equity Strategist for Fundamental Equities expressed an optimistic outlook for the upcoming transition as the US government unwinds its second round of quantitative easing. Doll expects to see a continued cooling of the climb in commodities (although he expects they will continue to climb long-term), which he says should be favorable for economic growth and for equities.
"Economic positives outweigh the negatives," Doll says pointing to April employment reports, and an uptick in household debt levels. These things "help support our view that the economy is shifting into a self-sustaining mode," he writes.
Most would agree that the US economy, although strong in comparison with the rest of the globe, has shown significant slowing. Last week, the asset management team at Neuberger Berman expressed expectations that even though there was a significant slow down, we would not "double dip" back into recession. Doll agrees, and although most are wary about what will happen with quantitative easing he writes:
"Despite the widespread concern that the end of the Feds program could derail the recovery and send markets into a significant correction, we think the impact will be minimal. There are significant differences between conditions today and when the Fed ended its first round of quantitative easing in the summer of 2010."
Doll cites e...................... To view our full article Click here
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