BlackRock advises to invest in stocks |
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| Strategic Finance | |
| Written by Gary Howes | |
| Friday, 26 June 2009 | |
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BlackRock’s Bob Doll says stocks still on track to post double-digit percentage gains in 2009.
The Chief Investment Officer of Equities at BlackRock (NYSE:BLK), Robert Doll says he believes equities will prove the wisest investment decision in the coming months. Doll believes that stocks in the United States and most other markets are on track to post double-digit percentage gains this year, with US stocks outperforming European stocks and emerging markets outpacing developed markets for all of 2009. BlackRock is set to become the worlds largest asset manager after they agreed to buy Barclays (LON:BARC) fund management division, Barclays Global Investors (BGI), for £8.2bn ($13.5bn). Equities have entered a “sideways correction phase,” according to Doll, and though it is extremely unlikely that prices will retreat back to their early-March levels, some modest near-term declines with continued volatility are likely. At the same time, the current upturn significantly differs from previous, failed rally attempts Doll says: “From a technical perspective, the recent rally has been marked by strong momentum and expanding volume on the upside, and diminishing momentum and volume on the downside. “Also, lower quality and more cyclical areas of the market have been outperforming, as have emerging markets when compared with developed markets, trends that occur when more sustained recoveries begin.” S&P 500 Will Hit 1,000; Energy, Healthcare and IT Are Favored Sectors. On balance, Doll believes that the S&P 500 Index will reach 1,000 by year’s end, but also holds out the possibility of a near-term pullback before then that could take the index back down to the 800 to 850 mark (the index closed at 901 on Wednesday, June 24).
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