Historically, the third year in the presidential election cycle is rather good for U.S. equities. The year following midterm elections is also good. Between these two catalysts, stocks should have a relatively smooth ride, according to Doll.
Although using just political stock trends would make investing easier, there are other forces at play when it comes to the stock market. One of those forces are commodities -- and in this case, oil.
When coupled with other geopolitical issues, the swoons in crude oil prices helped reintroduce volatility into the stock market in October. But nonetheless, lower oil prices are good for the economy and the stock market, Doll said.
The U.S. has the highest consumption per capita for oil, so when prices decline consumers have more money in their pocket. It also helps businesses lower input costs. This should bode well for the holiday season, he reasoned.
As for energy stocks, Doll says he is underweighting the sector. Following the large decline in recent months, investors should still be underweight energy, but not as negative on it.
The strength in the U.S. dollar is not helping oil prices. The dollar has risen significantly in 2014 and is likely to weigh on multinational companies with exposure to countries with weaker currencies and economies.
While the dollar's strength will negatively effect these companies, it won't "sink them," Doll concluded.
-- Written by Bret Kenwell