BlackRock Inc.’s (BLK) global chief investment officer of equities Robert Doll, said in a telephone interview with Bloomberg news service that S&P’s 500 Index may fall as much as 11%, led by financial shares, before rallying to end the year at 1,000.
From Bloomberg: “The more they’ve gone up, the more vulnerable they are to a correction,” said Doll…who oversees $266 billion at the largest publicly traded U.S. asset manager….“They’ve been non-stop up for the last bunch of weeks as if all problems got solved, but they are not all solved.”
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There’s “uncertainty regarding the capital raising that will take place” and how banks will dispose of toxic assets, he said.
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Doll said that volatility will increase once the results of the stress tests on the country’s 19 largest banks are released.
Doll’s year-end forecast for the S&P 500 at 1,000 level represents a 14% gain from its May 1 close of 877.5. The S&P reached a 12-year low of mid 676 pts on March 9.
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