In this week’s Barron’s, Nuveen Asset Management’s chief investment strategist shared his list of the primary implications for investors of the Trump victory: Equity markets may remain generally positive toward Trump’s victory, for now. The rally in risk assets and the sell-off in Treasuries likely reflects that markets had priced in the probability of divided government. We expect further upward pressure on bond yields. Since its low point over the summer, the increase in the 10-year Treasury yield reflects a combination of rising inflation expectations, a possible increase in debt issuance and expectations of a more hawkish Federal Reserve. The […]
The S&P 500 inched up another 1.2% last week and, according to a Barron’s article by Bob Doll of Nuveen Asset Management, while equities are expensive on a historical basis they are still an attractive alternative to bonds and cash. Doll outlines his take on current market conditions: The Fed will probably raise rates in December, provided “economic growth remains on track and the global financial system does not endure an additional shock.” U.S. inflation is “slowly creeping higher.” Economic growth in 2017 may resemble that of 2016, but he predicts that growth next year could be even slower. U.S. […]
Making predictions can be pretty dicey business in general, but particularly when it comes to matters of the economy. A recent Investment News article recapped an interview with 36-year veteran portfolio manager Bob Doll (chief equity strategist at Nuveen Asset Management) that focused on his predictions for the year and his general economic outlook. While Doll hit the mark with his forecast on stocks beating bonds, he admits to making the wrong call on sector performance. “We had a rally in energy and materials off the low, and the financials have yet again disappointed. I thought we had bottomed and […]
In a recent Barron’s article, Nuveen Asset Management’s Chief Equity Strategist Bob Doll says that, despite disappointing first quarter results and apparent earnings struggles, consumer spending will be a healthy tailwind for the economy as a whole. He offers contrasting views of the current market situation: Positive: Equity valuations don’t appear to be stretched; Earnings improvements should materialize in the coming quarters; The tumult in the oil market appears to be over; Investor sentiment may be overly bearish; Corporate tax reform prospects for next year appear strong. Negative: Improvements in the earnings outlook are probably necessary for equity […]
Bob Doll of Nuveen presents an optimistic picture of 2016, according to MarketWatch. Doll says, “My view is oil is going to stabilize at a low level, and we will see some of the consumer dividend get spent next year.” He continued: “So, the consumer’s going to be a bit better, oil’s going to be less of a headwind, so we’re going to be OK.” At the same time, Doll predicts that 2016 will be volatile. Yet, he maintains that corporate earnings, which could be challenged by a strong dollar, will likely be a key to the market’s overall success in 2016.