Should 401(k) Savers Be Wary in Current Market Craziness? Nuveen’s Bob Doll
In this brief interview from the 2019 NAPA 401(k) Summit in Las Vegas, John Sullivan of 401(k) Specialist speaks with Bob Doll, Chief Equity Strategist at Nuveen, about the state of the financial markets and implications for 401(k) investors.
Bob Doll addresses the recent volatility in the markets, marked by conflicting narratives such as rate hikes, trade tensions between the U.S. and China, and economic forecasts ranging from recession to optimistic growth. He emphasizes that “the truth is somewhere in between,” suggesting current market optimism may already be priced in.
As a strategist, Doll highlights his investment focus on stocks that generate free cash flow, have pricing power, and conduct most of their business in the U.S. He stresses that stock selection is key in such an environment.
For 401(k) participants and long-term investors, his message is cautious optimism. Given the long-running bull market, he advises being careful not to overextend and stresses the renewed importance of diversification, which may finally regain its relevance after years of underperformance.
Finally, Doll briefly mentions his well-known annual “10 Predictions” for the market, noting that as of early April, they’re tracking well.
