Don't Let Market's Wall of Worry Keep You Out of the Game
While many on Wall Street chatter about lurking storms on the horizon, Bob Doll, Nuveen Asset Management chief equity strategist, said investors shouldn’t let the worry keep them from playing the game.
In an interview with the FOX Business Netowrk’s Countdown to the Closing Bell, Doll said he sees better market and economic performance coming in the second half of the year with the earnings recession having bottomed out in the first quarter.
“I’m worried about a lot of things, but the good news is, the world is worried, and that’s representative of the cautiousness out there, the amount of cash on the sidelines,” he told host Liz Claman. “You have to interpret [that] constructively, in my view.”
What keeps many investors in the U.S. up at night is the looming rate decision from the Federal Reserve. September has long been pinpointed as the month the central bank finally lifts interest rates once again. But Doll said he’s not expecting liftoff this time around – his call is in line with market forecasts, which see only a 15% chance higher rates will come this month.
“If the Fed tightens in September, there will be a little bump. No question about it. Most people are not expecting September, maybe December,” Doll said. “The economy is growing, but it’s grinding. To [hike] a couple months before the election is unusual.”
Bottom line: Doll said market action will be bumpy, but he expects stocks to outperform this year.