Thursday, December 18, 2008

Power Lunch: BlackRock's Bob Doll says investors should "buy more risk." What was one of his "low-quality" picks?



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Power Lunch

Question: BlackRock's Bob Doll says investors should "buy more risk." What was one of his "low-quality" picks?

Answer: Valero


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BlackRock's Doll: Buy More Risk!

BlackRock vice chairman and global chief investment officer of equities Bob Doll says it's time to re-introduce risk into portfolios.

"My view has been that we're in a bottoming process, and I think that within portfolios, the uni-dimensional 'I only want quality' has to be augmented here," he told CNBC. "I think portfolios need to, slowly but surely, add some risk to them."

Recommendations:

He has some evidence to back up his assertion.

"I look at baskets of stocks," Doll explained. "My quality basket is Amgen , Kroger , and Exxon (Mobil) , and my low-quality is Capital One (Financial) , Toll Brothers , and Valero ."

Doll's conclusion? He declared: "The second group handily beat the first group!"

Disclosures:

Disclosure information for Bob Doll was not immediately available.

Disclaimer

© 2008 CNBC.com
URL: http://www.cnbc.com/id/28275363/site/14081545/

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