Mr. Doll said the slowing is due to factors such as weakness in the housing market and a slowing in the industrial sector related to the slowing of the housing market.

That slowing, Mr. Doll continued, will be felt more on the East and West Coasts than in the middle of the country. These areas experienced substantial increases in property value during the recent housing boom, he explained. Mr. Doll also said that an increase in mortgage defaults was "almost inevitable" but also noted that it would be an increase that started from "pretty low levels."

Mr. Doll said that while the housing market was a contributor to the "soft landing" of the U.S. economy, it would not derail the U.S. markets.

Among the sectors that Mr. Doll said will outperform other sectors this year are: energy, health care and technology. Reasons he offered include: a health care sector that is "somewhat independent of the economy"; attractive valuation levels and companies with cash on their balance sheets in the technology and health care sectors; and continued strong demand for oil and other energy sources.

With health care costs rising and health care expenses growing as a percentage of gross domestic product, the health care sector will continue to do well in the future, he added.

Between first-quarter 1950 and first-quarter 2006, that percentage increased from just under 3 percent to approximately 12 percent, according to a Blackrock slide citing Haver: CIR U.S. Equity Strategy.

Other predictions made by Mr. Doll include Japan's increased nominal growth which will lead to equity market outperformance.

He also said he foresees the outperformance of large cap stocks compared with small cap stocks and a continued strong productivity that will result in "inflation behaving itself."