Investment landscape poised for significant change but stocks should beat bonds over the next six to 12 months.
Nuveen's chief equity strategist Bob Doll says economic underpinnings, including revenue growth, are strengthening as stock prices continue to climb. And valuations? Not insane.
Downward pressure on the markets is coming from a number of sources, including geopolitical risk in the form of heightened conflict between North and South Korea, the deepening of the European debt crisis, policy tightening in China, an FBI-led investigation of insider trading, confusion over the implementation of quantitative easing and weakening housing market data
Equity markets responded well to last week's news flow (which included the US midterm election results, the Federal Reserve's announced launch of a second round of quantitative easing and a strong October labor market report) and posted significant gains
Equities took a break from their four-week run and consolidated gains last week, posting very slight losses
The economic recovery will continue; we do not believe that the economy will endure a double-dip recession. Growth levels should remain positive for the time being, although the pace of growth will be slower than that typically associated with recoveries.
U.S equities posted positive results last week as uncertainty continued to ease in the markets.
Once again, disappointing economic data caused stock markets to sag last week, with the Dow Jones Industrial Average falling 1.6% to 11,952, the S&P 500 Index declining 2.2% to 1,271 and the Nasdaq Composite dropping 3.3% to 2,644. Investors also witnessed a rebound in the US dollar, a rally in bonds and a rise in oil prices.
Market volatility remained high last week, with stocks sinking early before rebounding on Thursday.
