BlackRock's Doll remains bullish on US markets despite three-month lows

BlackRock's Bob Doll believes the 8% correction in the US markets over the past four weeks is the result of profit taking and the bull market will resume, with stocks set to rally again by the end of the year.

Last week the US markets hit their lowest levels since April, but Doll, CIO of global equities, claims stocks have not priced in the possibility of an economic recovery and have the potential to see further upside. “In our opinion the cyclical bull market has further to run,” says Doll. “The rally that began in March allowed equities to appreciate by roughly 40%, so it should not come as too much of a surprise to see stocks pause. “At their levels in March, stocks were pricing in the probability of a depression, and now we believe they are reflecting the reality of a recession.” ...