BlackRock’s Doll: U.S. market will generate hefty returns this year

Equity markets in the United States will wind up posting double-digit percentage gains this year, according to Robert Doll, the vice chairman and chief investment officer of New York-based BlackRock Inc. In his midyear outlook report, released today, he projected that the Standard & Poor’s 500 stock index will hit 1,000 by the end of the year, which would be a 10% increase from its closing level of 901 yesterday. Mr. Doll admonished, however, that the markets remain volatile and that the S&P could suffer some near-term declines that could take the index to 800-850 before it crosses the 1,000 mark. He also noted that the energy, health care and technology sectors will present some of the best opportunities over the second half of 2009 and will outperform utilities, materials and financial stocks. "Financials have bottomed," Mr. Doll stated in his outlook. "But this sector will likely continue to lag as many financial companies experience balance sheet problems." Mr. Doll, stating that the worst of the recession is now "in the rearview mirror," also predicted that U.S. markets will perform better than European markets, but emerging markets will likely outperform all developed markets for 2009.