Don’t expect a currency markets correction unless earnings commence to tank, closely implemented strategist Bob Doll told CNBC on Wednesday.
A possible market correction “is usually the case, certainly,” said Doll, Nuveen Asset Management’s chief equity strategist. “But we even now have incredible earnings expansion, we still have [an] S&P 500 yield [that] is not much not the same as a 10-season Treasury. We even now have central banks around the world that happen to be accommodative. Layer on top of that, a pro-growth goverment tax bill.”
“As long as income happen to be OK, we’re not likely to get a major pullback,” Doll, who says he’s even now fully invested, told “Squawk Box.” At the moment, “earnings are simply too powerfully good” for a 10 percent correction, he added.
Stocks were little changed Wednesday after U.S. equities finished in the red on Tuesday. Investors were keeping an eye on Washington because they waited for information on a Republican-led goverment tax bill.
Doll said the GOP “could have crafted an improved” goverment tax bill, but added, “it’s not all bad.” He also mentioned the recent shift in leadership of sectors.
“Do we own some more financials than we did? Yes,” Doll said Wednesday. “Perform we own a little not as much tech? … but I’m not really saying tech has ended. I think tech will come back on. It’s just not going to come to be the only head.”
Also in “Squawk Box,” strategist Lou Brien says a possible fresh goverment tax bill has benefited the market, but generally there are other reasons stocks “have already been solid.”
“We’ve been trading to kind of the rhythm of the taxes legislation, and the drama of whether it’s going to complete or not,” stated Brien, of DRW Trading Group. “But taxes legislation, like other activities, is just the latest news.”
– CNBC’s Fred Imbert contributed to this report.