T. Rowe Price: Conversations

Investors should temper their expectations for equity returns amid elevated valuations and peak profit margins, but several positive trends could support further market gains.

For the first time since the global financial crisis, the U.S., Europe, and China are on a solid growth path with improving employment trends, but the pace of growth is expected to slow in 2018.

Several structural factors for international markets are likely to remain supportive, but these developments are already priced into markets and valuations generally remain above average. Investors should expect more volatility in 2018.

Technology innovation is driving an accelerated rate of change, and the biggest winners have catapulted to unprecedented value. These trends are likely to continue, providing many attractive opportunities for investors.

Fixed income strategies were successful in 2017 but fixed income investors should expect a more challenging year in 2018 as interest rates rise and central banks begin withdrawing liquidity.

With historically low interest rates expected to persist, dividend growth investing remains an attractive strategy, according to Tom Huber, manager of the T. Rowe Price Dividend Growth Fund.

With the Federal Reserve normalizing U.S. interest rates, active management and global diversification are becoming more important for fixed income investors, says Chris Dillon, a T. Rowe Price global fixed income portfolio specialist.

Although small cap indices have been hitting record highs, the outlook remains favorable, says David Wagner, manager of the T. Rowe Price Small-Cap Value Fund.

Larry Puglia, U.S. equity portfolio manager, discusses how the fundamental environment for equity investing could remain favorable, but uncertainty over President Donald J. Trump's policies poses risks.

Gonzalo Pángaro, emerging markets equity portfolio manager, discusses how rising U.S. interest rates are a headwind for emerging markets, but investors may do well if rates rise at a gradual pace and inflation remains moderate.

Steve Huber, fixed income portfolio manager, discusses how U.S. interest rates are likely to rise further early this year, but credit sectors tend to perform relatively well in a period of gradually rising rates.

Judith Ward, a senior financial planner, discusses strategies on how investors need to maintain a long-term perspective to cope with stock market volatility. A well-diversified portfolio can help weather market downturns.

Timothy Murray, a global allocation specialist, discusses the equity market environment and asset allocation strategy. Although the U.S. equity markets have staged a strong rally since bottoming in mid-February, investors face stiff challenges ahead.

Chief U.S. Economist Alan Levenson discusses the probability of a U.S. recession this year and that it remains low. The economy is not overextended in terms of the unemployment rate, and corporate profit margins remain firm.

Nick Beecroft, a portfolio specialist for Asia ex-Japan equities, discusses how global markets have been ambushed by recent events in China but says this does not change the firm's positive, longer-term view for investing in China or Asia more broadly.

Nick Beecroft, a portfolio specialist for Asia ex-Japan equities, sees several positive trends on the horizon, and the recent sell-off has created many attractive investment opportunities.

Nick Beecroft, a portfolio specialist for Asia ex-Japan equities, sees several positive trends on the horizon, and the recent sell-off has created many attractive investment opportunities.

Mike Conelius, manager of the Emerging Markets Bond Fund, discusses why improving fundamentals and higher yields should support an emerging market bonds performance rebound in 2016.

Hugh McGuirk, head of T. Rowe Price's Municipal Bond Department, does not expect the pace or magnitude of Fed rate hikes to pose a significant threat to municipal bond prices.

Steve Huber, manager of the Global Multi-Sector Bond Fund, does not expect long-term rates to change significantly and sees opportunities globally with central banks in different phases of monetary policy.