Doll: S&P 500 faces correction but will power to 1,250

BlackRock CIO Bob Doll believes the S&P 500 could reach 1,250 during this cyclical bull market, but he expects the markets to face a near-term correction.

Having predicted in January the S&P would end the year at 1,000, Doll admits the rally has been stronger than he anticipated. He predicts the index, which climbed 2.3% to 1,010 last week, will fall to between 850 and 950 before reaching the 1,250 level. Doll disagrees with the consensus view the recession has ended, but says the decline of negative data in the labour market, improvements in the residential construction and manufacturing sectors and signs house prices are stabilising are positive indicators. “On balance, we believe the recession is certainly easing, even if it is not a...