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Bob Doll, the Chief Equity Strategy at the world’s largest money management firm, Blackrock, sees the markets substantially higher later this year. Doll says the markets are overreacting to the recent concerns in China and Europe. He believes the recovery will continue unabated:

“Despite the negative tenor of these events, we believe the financial stress in the system should be better controlled than it was in 2008, and we are not expecting a return to the conditions that plagued the global economy and financial markets two years ago. Central banks are still operating under many of the facilities put into place then, and the banking system as a whole has benefited from deleveraging, write-down and capital rebuilding. Additionally, the overall magnitude of sovereign debt exposures is significantly smaller than that of the mortgage-related holdings that ultimately provoked the 2008 credit crisis.

From our perspective, as long as the world economy does not sink back into recession (an event we consider unlikely), equity markets should be able to weather the current period of uncertainty. The economic recovery should continue, although we expect the pace to be relatively slow and interrupted along the way by periods of disappointing data. We believe investors will need to see a recovery in European debt markets and evidence that contagion can be contained before confidence can be restored.”

Ultimately, Doll sees the S&P 500 surging back up to 1250.

Source: Bob Doll: S&P 500 Is Going to 1,250