In the latest episode of Consuelo Mack’s WealthTrack, BlackRock Global Chief Investment Officer of Equities Bob Doll says government stimulus is still providing a wind at the market’s back, and that investors shouldn’t forget that.
Doll says he’s a stock picker who also looks at macro factors, and continued stimulus impact is one of the macro factors behind his current bullishness. “That’s a wind at our back,” he said of the stimulus plans put in place in the U.S. and abroad. “This is a powerful tailwind. … When stimulus is powerful, financial markets tend to do well.”
Doll acknowledges that the winding down of the stimulus could cause some problems. But he thinks that the government support won’t be removed until self-sustaining mechanisms — exports, business investment, etc. — are providing enough support to replace the stimulus’ impact.
Doll also talks about how the speed of information has impacted the investing world over the past decade or two, how investors should approach risk, and how the U.S.’s status as the world’s greatest debtor nation impacts his investment approach.