Blackrock Q4 Investment Outlook: Buy Stocks

Tyler Durden's picture Submitted by Tyler Durden on 10/11/2010 08:05 -0500

BlackrockExchange Traded Fund

Blackrock Q4 outlook summary: “Dear Greater Fools – please come back! We need you, our ETF creation shares need you, our trillions in overrated investments need you!” From Bob Doll: “Equity valuations are attractive: We believe equities are underpriced at current levels. The tricky economic backdrop suggests a continued focus on high-quality equities, but also some allocation to cyclical areas of the market.” Well duh.

 

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by SheepDog-One
on Mon, 10/11/2010 – 08:10
#640604

Wow this whole country now just disgusts me, just a festering open sewer of fraud lies and corruption.

Login or register to post comments by peripatetic86
on Mon, 10/11/2010 – 08:11
#640606

We believe that you should believe that we believe that you are very stupid….

Login or register to post comments by EscapeKey
on Mon, 10/11/2010 – 08:21
#640625

We know that you know we think you’re stupid.

But do you know that we know that you know?

Login or register to post comments by snowball777
on Mon, 10/11/2010 – 08:11
#640607

Just because the bubble is so silly that even their pathetic P/Es don’t look that bad doesn’t make them “underpriced”. Maybe they can convince an HFT with that crap, but I’m looking for dividends, not pets.com

Login or register to post comments by rocker
on Mon, 10/11/2010 – 08:19
#640622

In this economy a PE of 8 or 9 on S&P would be normal. Less is a bargain. More is a trap. 

Login or register to post comments by eigenvalue
on Mon, 10/11/2010 – 08:15
#640613

Certainly the fundamentals are indeed very lousy but the stock market is soaring. Nobody can deny that. Anyone who go short equities because of the poor fundamentals has got annihilated.

Login or register to post comments by Kina
on Mon, 10/11/2010 – 08:16
#640615

“Equity valuations are attractive: We believe equities are underpriced at current levels.

He said rubbing his genie BB.

 

Login or register to post comments by Kina
on Mon, 10/11/2010 – 08:17
#640618

There remains only one fundamental.

Login or register to post comments by No Mas
on Mon, 10/11/2010 – 08:31
#640645

Appears to be the case.  A call for higher stocks doesn’t equate to a call for a better economy here or anywhere else.  Don’t discount that this market can continue to make you money on the long side no matter what happens with housing, jobs or GDP.  Remember when all was going to fail because of Greece?  Look around; the IMF and ECB have long since finished with Greece and is now buying Ireland and anyone else in sight.

This market cares nothing about anything except the Fed; make some hay while the sun is shining!

Or put up your dukes and get your ass waxrd?

Login or register to post comments by Cognitive Dissonance
on Mon, 10/11/2010 – 08:17
#640619

Bob Doll

The supreme Wall Street keeper of the public myth that the land of milk and honey can always be achieved via undervalued stocks Blackrock just happens to own.

What a stud.

Login or register to post comments by firstdivision
on Mon, 10/11/2010 – 08:22
#640631

So basically they expect Q4 earnings to suck due to strengthening dollar.  Repatriation will be a bitch then. 

Login or register to post comments by EscapeKey
on Mon, 10/11/2010 – 08:23
#640632

Hussman has some comments with regards to the dividend yields of today:

Hussman: The Economy Is A Ponzi, And The Market’s Only Hope Is That The Bubble Continues

http://www.businessinsider.com/hussman-the-economy-is-a-ponzi-and-the-ma…

 

Login or register to post comments by mtremus
on Mon, 10/11/2010 – 08:23
#640633

I don’t think that I have ever heard Doll say SELL EQUITIES

Login or register to post comments by mtremus
on Mon, 10/11/2010 – 08:24
#640637

I don’t think that I have ever heard Doll say SELL EQUITIES

Login or register to post comments by Cognitive Dissonance
on Mon, 10/11/2010 – 08:34
#640649

Nor will you ever.

The keeper of the Wall Street myth can never admit there is a myth. To suggest it might be a good time to sell would imply that stocks might not be a good idea. To admit this, even if for the short term, is to let the first termite into the house.

Login or register to post comments by EscapeKey
on Mon, 10/11/2010 – 08:36
#640657

You might hear them say “It’s time to short the Proshares Ultrashort ETF’s.” 🙂

Login or register to post comments by AbandonShip
on Mon, 10/11/2010 – 09:38
#640767

I was at Merrill Lynch Investement Management (formerly ML Asset Management) in 2000 headed by non other than B. Doll and he had the same cheerleader attitude toward equities then as he does now, nothing’s changed with him in almost 10 years except the guy he reports to!  I guess he’s simplying doing what he was programmed to do in B-school (i.e., promote the market to greater fools).

Login or register to post comments by fightthepower
on Mon, 10/11/2010 – 08:29
#640642

Perhaps Bob Doll will end up hanging from a lamp post when this is all over. 

Login or register to post comments by Takingbets
on Mon, 10/11/2010 – 08:32
#640647

My daughters 23yo friend went and applied for a charge card at JCP last week and they gave her 1k in credit. She has no job and has never worked so she won’t be able to pay this money back. She told them this while applying for the card and it didn’t matter.

What are these businesses getting themselves back into and how long before this whole thing blows up again? Or are they back to selling this crap to overseas investors?

Login or register to post comments by Cognitive Dissonance
on Mon, 10/11/2010 – 08:37
#640659

JCP is taking it’s cues from Wall Street. Don’t worry about being paid back. Just worry about the debt being serviced. Cash flow and the income statement is what makes Wall Street happy now-a-days.

Until they must lower their standards once again. But that won’t be until next quarter, so who gives a damn.

Login or register to post comments by Takingbets
on Mon, 10/11/2010 – 08:43
#640670

So there sales will skyrocket along with the stock price so they can shear the investors when the wheels come off?

Login or register to post comments by snowball777
on Mon, 10/11/2010 – 10:27
#640878

Like the tail end of a 7-11 slurpee.

Login or register to post comments by John McCloy
on Mon, 10/11/2010 – 10:15
#640658

Bob Doll never met an equity he did not wanna pump. And what a fitting last name for a man who repeats the same thing over and over to the point of exhaustion. He reminds me of some demonic Wall Street middle class savings obliterating version of ” Talking Tina” from the Twilight Zone. Saying beautiful sweet things while the family is around.

“I’m Talking Bobby and you should buy underpriced equities so you can retire at 40”

” I’m talking Bobby and I love you and appreciate the years of labor that has produced your savings” And then…Telly Savalas appears and Talking Bobby tells us what he is really thinking.

” I’m Talking Bobby. I don’t like you very much and I’m going to destroy you”

Login or register to post comments by novanglus
on Mon, 10/11/2010 – 08:49
#640684

I attended a breakfast presentation by Doll last Thursday where he was pitching the same buy equities message.  The room was a mix of individual investors and investment advisors (since it was sponsored by Morgan Stanley Smith Barney).  The presentation was reasonable, as Doll hedged consistently that things weren’t great and that the best we could hope for was to “muddle through”.  He conceded that he was only considered bullish, because he was not in sky is falling mode.

What was fascinating was the question and answer session, because it sounded alot like the comments here at ZH.  The questions were all challenges to Doll’s thesis – what about the price of gold, high frequency trading, quantitative easing, devaluation of the dollar, fraudulent mortgages and foreclosures, use of the dollar for the carry trade, mark to fantasy accounting.  I am pretty certain that these questions (including my own) came from wary retail investors.  I noticed a few people in the room with a bit of a wide-eyed look on their faces, and I presume these were the investment advisors who had initiated the invitations on behalf of MS/SB.  The questions were all polite and evenly put, but I think the skew against the Doll thesis caught the “professionals” by surprise.

In responding to the questions, Doll dodged the points gracefully.  He conceded the facts, but implied that the effects would be less dire than the questioner implied.  The real problem with his thesis is that while he may be correct about stocks appreciating nominally, he implicitly seemed to concede that the underlying real wealth could deteriorate.  I don’t think anyone left the room incented to plow funds into equity.

Login or register to post comments by Gordon Freeman
on Mon, 10/11/2010 – 09:01
#640701

He’s just a more polished version of a truly flamboyant, hard-core pimp like Art Hogan…

Login or register to post comments by Bill Lumbergh
on Mon, 10/11/2010 – 08:49
#640685

Attention Cramerica:

“We need you to liquidate all non-equity assets, even your home, and BUY BUY BUY the Dow up to 20,000!”

Login or register to post comments by buzzsaw99
on Mon, 10/11/2010 – 08:50
#640686

I wonder if bob will sell me some of his fine investment products? He sounds uber-smart and I want to get in.

Login or register to post comments by cowdiddly
on Mon, 10/11/2010 – 09:24
#640708

Why buy a stock in a Corporation? Give them your hard earned money to pay fat CEO bonuses and 40% of the profits go to the bonus pool? Provide them money to lobby and buy your representatives to pass laws detrimental to you and your family, shooting your own self in the foot? Support Chinese slave labor? Never mind naked shorting, dark pools, frontrunning, HTF ect. All in the hopes of a 4% return which is negative equity after taxes and inflation. All the while hoping you don’t get Enroned, Kmarted or GM-ed. GO FUCK YOURSELVES 

Login or register to post comments by nmewn
on Mon, 10/11/2010 – 09:16
#640725

Shane!…come back Shane!…please come back Shane…LOL.

Login or register to post comments by Hondo
on Mon, 10/11/2010 – 09:24
#640744

It is truly laughable how obvious they are making it that they want to steal your money, they need your money to maintain their life style….screw your life style….this is really criminal.

Login or register to post comments by 99er
on Mon, 10/11/2010 – 09:24
#640746

Chart: SPX

Hear that? Buy now?

http://99ercharts.blogspot.com/2010/10/spx_11.html

Login or register to post comments by Cognitive Dissonance
on Mon, 10/11/2010 – 09:53
#640790

As a recovering mechanical draftsman, all I will say is I love your charts. :>)

Login or register to post comments by 99er
on Mon, 10/11/2010 – 10:22
#640863

Thanks. Anyone can do it…for free too: https://www.thinkorswim.com/tos/client/index.jsp

Login or register to post comments by Djirk
on Mon, 10/11/2010 – 10:16
#640848

This rally is going to go so big you should take another mortgage on your house and buy into equities…oh wait.

Some sell side bank equity analyst actually said this in 1999 

Login or register to post comments by HarryWanger
on Mon, 10/11/2010 – 10:18
#640850

I’ve mentioned this before, the market is only up 3% this year. It’s not like it’s gone crazy or “retarded” or is in a “bubble”. It seems to be pretty much where it should be right now. Just muddling along. Not expensive not cheap, just in a blah zone that reflects the economy.

Login or register to post comments by snowball777
on Mon, 10/11/2010 – 10:29
#640883

Buy, HW, buy; the HFTs and insiders need you.

Login or register to post comments by gwar5
on Mon, 10/11/2010 – 10:21
#640861

Exactly – highlighted comment took the words out of my mouth – They need a lesser fool to sell to.

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