BlackRock's Bob Doll warns of cracks in the stock market's bull run

A veteran market strategist has warned that the current bull run in the stock market today faces growing risks. Bob Doll, the former chief equity strategist at BlackRock, highlighted concerns over stretched valuations and speculative trading. His comments come as major indices continue to climb, though some sectors show signs of weakness.

Doll pointed to inflation pressures and the possibility of declining corporate earnings as key threats. He suggested these factors could trigger market pullbacks in the near term. Despite the strong performance of major US indices—ranging from 13% to 20% gains—he urged caution.

His advice for investors centres on high-return-on-equity (ROE) stocks, particularly major US banks. Yet, over the past 12 months, these same bank stocks have underperformed the broader market. Meanwhile, European banks have significantly outperformed their US rivals in 2025, adding another layer of complexity to Doll's recommendations.

The warning from Doll underscores the fragility of the ongoing bull market. While US indices remain strong, uneven sector performance and economic risks could test investor confidence. His focus on high-ROE stocks reflects a strategy aimed at navigating potential downturns.