It is likely Greece will eventually have to leave the eurozone, according to BlackRock’s Bob Doll.
The chief equity strategist for fundamental equities at BlackRock says while the passage of Greece’s second rescue package will buy some considerable time, signs point to Greece’s departure from the single currency.
A Greek departure is cited as one the major downside risks, along with uncertainty generated by the US election season and the ECB’s expansion of its balance sheet, that threatens the recent equity run.
Doll speculates that the macro-economic environment remains equity friendly, adding: “The economic expansion should continue, inflation remains muted and central banks around the world are hyper-focused on maintaining easy monetary policy. (article continues below)
“Add to this backdrop the fact that stock valuations remain attractive, and the case for sticking with stocks gains strength.”