Stocks Will Beat Bonds, Republicans to Sweep Predicts Nuveen’s Doll

Despite this week’s selloff, Nuveen chief equity strategist Bob Doll is sticking with his prediction that stocks will outperform bonds for the fifth consecutive year. “I think that this week is going to be an anomaly just like the August swoon was. It feels very similar,” said Doll, who made the forecast in his 2016 list of ten predictions. “We think interest rates will creep higher and inflation moves from very low to low. And we think the U.S. consumer will provide enough earnings for the stock market to do okay.” Doll added that equity prices have historically risen in the twelve months following the first Fed rate hike. As a result, Doll recommended an overweight in equities versus bonds, and would be especially wary of U.S. Treasuries. He also predicted that U.S. equities experience a single-digit percentage change for the second year in a row for the first time in almost 40 years.