With the economy in “reasonable shape” and unemployment falling, Blackrock’s Bob Doll says now may be the time for those still waiting on the sidelines to get back into stocks.
“We’ve escaped from the brink,’’ Doll said at a recent Fort Lauterdale conference, the Miami Herald reports. “In our view, for now, the economy is in reasonable shape. … Historically, the best time to buy common stocks is when the unemployment rate is high and falling.”
Doll also points to the Presidential Election Year Cycle as a reason for bullishness — the third year of the cycle, which we are now in, usually yields big returns. He thinks stocks will continue to outperform bonds and cash, and he doesn’t see inflation as a problem in the short run, the Herald reports. Doll does, however, think the U.S. recovery will be slow and sometimes halting, according to the Herald, in part because of soft real estate conditions.