Stocks Could Test October Lows Before Resuming Rally: Expert

A long-time money manager Bob Doll is warning investors that stocks could breach October's correction lows.

Bob Doll, Nuveen Asset Management's chief equity strategist and senior portfolio manager, believes the Dow's 602-point Monday loss wasn't a fluke, suggesting there were clues in the early November market comeback that virtually cut October's losses in half.

Said Doll to the media Tuesday, "We had the rally off the low, and it did not have a lot of confidence and conviction."

The 30-stock index on Monday saw its worst day since Oct. 24. The S&P 500 slumped 2% and the tech-heavy NASDAQ also got beaten up — almost 3%. The drop pushed the NASDAQ back into correction territory.

Doll sees three major factors "haunting" the market: How long earnings will stay strong, whether the Federal Reserve will tighten interest rates too aggressively and the potential fallout from the U.S.-China trade war.

Doll, who is a long-term bull, contends the economic cycle is still positive for stocks. It's just a question of when Wall Street angst and volatility will subside.

"I (just) don't think we're going to see a new high this year," he said.