Related: Bob Doll’s 10 Predictions for 2021
Every year market strategist Bob Doll offers 10 big predictions for the financial markets at the and updates those predictions six months later, while also gauging how right or wrong he was just six months earlier.
This year is no exception, though Doll has changed jobs, moving to faith-based investment manager Crossmark Global Investments as its new chief investment officer after spending eight and half years at Nuveen as chief equity strategist following stints at BlackRock, Merrill Lynch and OppenheimerFunds.
Looking ahead, Doll expects earnings growth will slow from their “off the charts” gains for the second quarter, which he says are likely more than 60% higher than a year ago, and inflation will rise. “The era of zero to 2% inflation is is over,” he says.
He anticipates the yield curve will most likely steepen and the economy will slow but the earnings backdrop will be supportive and cyclical, and international stocks outperforming.
In the intermediate term, between 3 and 12 months, he advises investors to “watch the Fed and inflation rate. The Fed has been the stock market’s best friend and it will eventually be the stock market’s worst enemy.”
Here’s an update on his earlier predictions for this year and some highlights of his latest projections.