“U.S. stocks will extend gains from a five-year high as corporate earnings increase and central banks maintain policies to stimulate economic growth, said Robert Doll, Nuveen Asset Management LLC’s chief equity strategist.
Interest rates near zero will lead investors to keep adding to equity funds, said Doll, who works at the Chicago-based firm that oversees $117 billion. He said he’s bullish on shares from the U.S. and emerging markets and concerned about European and Japanese equities.
“The fundamentals, meaning corporate earnings, macroeconomics, delay of problems in Washington, zero-percent return on cash, and monetary accommodation virtually everywhere in the world,” Doll said in a television interview on “Bloomberg Surveillance” with Tom Keene. “They’re the ingredients to me for stocks to go higher.”
The Standard & Poor’s Index has rallied 6.2 percent in 2013 after U.S. lawmakers reached a compromise on more than $600 billion in spending cuts and tax increases and corporate profits reached a record. The U.S. equity benchmark is less than 4 percent away from an all-time high reached in October 2007.
The Federal Reserve’s efforts to spur growth have included purchases of over $2 trillion in securities from December 2008 through several rounds of quantitative easing. The European Central Bank flooded its banking system with over 1 trillion euros ($1.37 trillion) in short-term cash beginning over a year ago, while the Bank of England and Bank of Japan have each undertaken their own stimulus programs.
Asset Allocation…”
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