Our experts talk about what they’re buying—and avoiding—in the year ahead.
Portfolio manager and co-director of equity research, North America, T. Rowe Price
While the U.S. fiscal cliff and the economic slowdown in both developed and emerging markets are a concern, there is reason for some optimism. The U.S. housing market is improving, corporate balance sheets are in good shape, and consumer confidence is improving. Valuations for U.S. stocks remain reasonable at 13 times forward earnings, and the dividend yield on the S&P 500 is higher than bank CDs and most Treasuries. Given that many market participants remain equity-cautious, any material good news is likely to be well received.