Sponsored by T. Rowe Price®
Broadening global growth should be supportive for profits in 2018, but our equity positioning is tempered by full valuations. Among developed equity markets, Europe and Japan appear more attractive than the U.S. While equity valuations in the emerging markets are modestly above historical averages, they appear less expensive compared with developed markets. Our relative preference for bonds does not imply a bullish outlook for fixed income assets. However, bonds can play an important role as portfolio diversifiers should we face geopolitical headwinds or if growth disappoints.
