Tags: Bob Doll | Fed | taper | win

Nuveen's Bob Doll: Fed Tapering Decision Represents Win-Win for Stock Investors

Friday, 01 Nov 2013 01:01 PM

By Dan Weil

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Whichever way the Federal Reserve goes in deciding when to taper its quantitative easing, stock investors come out a winner, says Bob Doll, chief equity strategist and senior portfolio manager for Nuveen Asset Management.

"I don't want to act like I can win both ways, but in a sense I can," he told CNBC.

"If [the Fed] keeps providing all this liquidity it's great for the stock market. And if they begin to taper, it's because the economy is doing better. Then I get a better 'E' on my earnings front. So I'm reasonably sanguine."

Editor’s Note:
5 Reasons Stocks Will Collapse . . .

He means the "E" in price-earnings (P/E) ratios.

The Fed decided against tapering at this week's policy meeting. And most economists don't expect the central bank to pull back on its $85 billion of monthly bond purchases until at least March.

Meanwhile, the stock market hit record highs Tuesday. Doll explained the stock markets is benefiting from the Fed's easing, rising profits, falling oil prices and falling interest rates.

"I talk to a lot of retail investors, and financial advisers, and their clients are tired of getting zero," he said, alluding to low interest rates.

"They're watching the stock market go up, and they're just buying some stocks."

Jim Russell, a senior equity strategist for U.S. Bank Wealth Management, agrees that the lack of tapering offers a boost for stocks. "The market is responding to the fact that a taper isn’t coming until either late this year or early next year," he told Bloomberg.

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

Related Stories:

Philly Fed's Plosser: Not Tapering in September Is 'Missed Opportunity'

Paul Singer: 'Severe Risk of Another Financial Crisis'

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