Although the United States is in a “soft patch” caused by bad weather and higher energy costs, BlackRock Chief Equity Strategist Bob Doll sees a number of “tailwinds” including an “impressive” increase in jobs in April that give investors a lot to be positive about.
“Over the last three months, the average increase in jobs has been 253,000, which would translate into an annual increase of three million new jobs, the best rate in over five years. Looking ahead, we expect the labor market improvements will continue,” he wrote in Monday’s weekly report.
Doll said that Corporate earnings are strong and standards for both business and personal loans are easing up.
In Europe, the sovereign debt problem, however, appears “not likely to go away any time soon,” he says.