Blackrock’s Doll: Buy Stocks; U.S. Economy Outruns; Health Care Wins

(January 8, 2010) — Predictions for 2010 from Blackrock’s Bob Doll, vice chairman and chief investment officer for global equities at the world’s biggest fund firm:

Stocks: Buy stocks and don’t obsess about inflation. Doll, who helps oversee about $3.2 trillion at BlackRock, said that while stock market increases will likely be less steep than in 2009, U.S. stocks could deliver yearly returns of between 6% and 8% over the next decade.

Emerging Markets: By the end of 2010, Doll said emerging markets may outperform developed economies, warning investors to expect gyrations.

“I like to compare emerging economies to teenagers,” Doll said, according to Reuters. “They are going to become adults…but it could be a bumpy road.”

U.S. Economy: Doll predicts the U.S. economy will overtake the economies of Japan and Europe. He said the growth of emerging markets will benefit U.S. company earnings, since about 40% of the Standard & Poor’s 500 stock index come from international sources.

Health Care: “We are at the beginning of the removal of uncertainty over health care reform,” Doll told Reuters. He favors the health care sector over financials, utilities and materials. Other industry picks are information technology and telecommunications.