Robert Doll bets on emerging markets, says flows to swell

The US debt crisis definitely was a market mood spoiler but it might just usher in some luck to emerging markets. Emerging markets have once again turned out to be a hot favourite among global investors.

Betting high on emerging markets, Robert Doll, Chief Equity Strategist, BlackRock expects big flows into them in 2012. In an interview to CNBC-TV18, Doll said, "We may see switch in flows in the second half." On a positive note, he continued that the economic indicators do not point to a recession as earnings and free cash flow look strong. According to Doll, the US markets may continue to see 10% rally in case there is no recession. Ceiling for S&P 500 is 1250 level, but may tank to1100 in a recession kind of situation, he noted. Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: Many brokerages are now working with almost 50% likelihood of a double dip recession in the US. How likely is that according to you? A: There is certainly the fear of recession that has enveloped the markets, on the back of slow first half, exacerbated by the debt ceiling debate and the debt downgrade and the structural problems in Europe. As a result, people have been scared into thinking that we may have a recession. Not unlike last summer, the question is what are the economic issues that point to that (recession) and so far, we don