US investor sentiment set for upturn: Doll

Investors in US equity markets are likely to become more positive about the region's chances of a recovery following the release of "positive economic news" in coming months, says Bob Doll.

The BlackRock vice chairman and equities global CIO attributes the market downturn from mid-June to last week to profit taking and predicts US companies' earnings figures will improve from Q3 to Q4 this year. He warns investors are particularly sensitive to corporate and economic figures and remain sceptical of recovery. "We find that many market participants are still skeptical and appear convinced that there remain significant downside risks from continued deleveraging by an overstretched US consumer," he says. "Given the depth and nature of the current recession, and the underly...