Blackrock Chief Equity Analyst Bob Doll says he hasn’t sold any stocks because of the debt ceiling imbroglio, and he expects a deal will get done.
“We’re going to have a massive circus,” Doll tells CNBC. “It’s not going to be fun. In the 12th, maybe 13th hour we get something done and we move on. Hopefully, it’s something substantial. If not, we’ll have to do something substantial down the line.” Doll also says the U.S. is headed in an “austerity direction”, though to what degree is unclear.
Doll says the markets haven’t been shaken by the debt ceiling talks because other good things are happening — progress has been made on Greece’s debt woes, he says, and recent corporate earnings and revenue reports have been good. But he says the debt sideshow has affected Americans’ psyches in a negative way. “It just doesn’t engender confidence,” he says. “And we’re in a period of time where confidence hasn’t been what we need it to be, both consumer and business, and we need to restore some of that. And if we can, we’ll get back to hiring some workers.”