BlackRock's Doll sees S&P 500 at 1,250 by year-end
BlackRock Inc's vice chairman and chief investment officer for global equities Bob Doll said on Wednesday he sees the Standard & Poor's 500 stock index reaching a level of 1,250 by year-end.
Doll told reporters he is not concerned about U.S. inflation given overcapacity in all sectors of the economy, citing labor and manufacturing capacity.
He said he favored the healthcare sector, information technology and telecommunications companies over financials, utilities and materials stocks.
We are at the beginning of the removal of uncertainty over healthcare reform, Doll said, adding that managed care and healthcare services companies will likely benefit the most as they were the ones punished most by uncertainty over legislation.
Doll said he expects the U.S. economy to grow by a little more than 3 percent in 2010, due in large part to the massive government stimulus program that sees much of the spending coming this year, while another major bump would come from inventory restocking.
Inventories alone, which got to depression levels, need to be replenished. That will add at least a percentage point to GDP here, he said.
Doll reiterated his expectation that equities will outperform U.S. Treasuries while emerging markets will outperform the developed markets.
He expects U.S. companies to benefit from greater earnings growth due to operations from outside the United States.
(Additional reporting by Jack Reerink; Editing by James Dalgleish)
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