When Bob Doll, chief equity strategist at Nuveen, made his predictions last year for 2018, he expected a move from a smooth gallop to a “bumpy grind” in the stock market and economy. His predictions held true for economic and earnings growth. And for most of 2018 the stock market was fine—until the sharp correction at the end of the year.
“As we enter 2019, investors are mainly wondering whether this correction will be short living or if we are starting a downward spiral,” Doll said.
Doll has long been making his yearly predictions, but 2019 was more difficult to forecast, he said.
“But, at the end of the day, I remind myself that I am an active manager, meaning it’s my job to come down on one side or another: I lean toward a constructive view on equities,” he said.
Overall, Doll doesn’t expect a recession this year, with a strong consumer sector, solid corporate sector and expanding government sector. While he expects stronger market performance than in 2018, this year will be a difficult one for investors, who will have to be selective and tactical. “Long-term investors may want to add to positions during periods of weakness and trim holdings during periods of strength,” he said.
Click through the gallery to view Doll’s predictions in more detail.