First, why are individuals shunning stocks? We cut them in half in 2000. We cut them in half again from 2007-2009. They're scared. That's to be expected. You have to ask, OK, what are the alternatives? And where have they been putting their money? We all know they've been selling stocks and buying bonds. You look at the big gap that's opened up in the valuation of stocks vs. bonds, and you've got to believe, unless the world is going to end and we are going to have a depression, that the gap is going to close.
We all know that the public tends to buy after things are moving up. So maybe what we've seen in the last few weeks is the beginning of the reversal.
The difference is, in 2010 the risks were more to the downside. In 2011, in my view, the risk is more to the upside. So if we're wrong, I think our forecast is too low.
~Bob Doll, chief equity strategist, BlackRock, "Experts agree: Get over your fear and get back into stocks", USA Today, December 17th, 2010