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.”
There’s “uncertainty regarding the capital raising that will take place” and how banks will dispose of toxic assets, he said.
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.