Ed Hyman and Bob Doll Share Their Views on the Economy and Stocks

By on January 12, 2012

Ed Hyman - ISI GroupConsuelo Mack recently interviewed Bob Doll, chief equity strategist at Blackrock, and Ed Hyman, manager and co-founder of ISI Group and voted Wall Street’s number 1 economist 32 years in a row.

Both Doll and Hyman were on hand to give their 2012 forecast and expectations for the stock market and economy.

Hyman expressed surprise the economy was doing as well as it was and said things would be different in 2012. What he expected to be different was that the economy would actually get better.

Hyman said the economy has been performing better than expected every week for three straight months. He also commented that consumer confidence has improved significantly in the past 3-4 weeks.

When asked where the strength was coming from, Hyman said it was broad-based and, “somewhat mysterious.” He added that the consumer is spending, employment is picking up, and credit is expanding. Hyman said it was not something to get excited about, because the economy is not doing great, but merely doing better.

Bob Doll - BlackrockDoll also said he expects the U. S. economy to do better in 2012. He cautioned that the rest of the world is slowing down including Europe and some parts of Asia. Doll said it would be interesting to see if the U. S. brings the world up, or the rest of the world contributes to a slowdown in the U. S. Doll’s expectation was that the U. S. would slow down with the rest of the world.

The interview continued with Doll’s view of the stock market (more of the same as 2011 with a positive tone); Hyman’s opinion of the “European nightmare,” China, and his expectations for inflation and interest rates; Doll’s feelings on the Euro, interest rates, bonds and attractive companies with accelerating free cash flow; opinions from both regarding downside risks to the stock market and the impact and importance of the upcoming election, and comments from Hyman regarding his favorite stocks including Ralph Lauren (RL) and Home Depot (HD).

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