Sebastien Page is the head of asset allocation for T. Rowe Price Group. He and his colleagues determine the investment mix for the company’s multi-asset mutual funds, including target-date funds.
Kiplinger: How do you feel about the stock market for the rest of 2017?
Page: First, I should say that T. Rowe Price does not have a “house view.” In the Asset Allocation Committee, we are somewhat bearish, but not too bearish. We have been reducing our exposure to stocks relative to bonds. For investors with a long time horizon who are saving for retirement, stocks are crucial. But as we look toward the end of the year and early next year, we’ve been reducing our exposure slightly. If a portfolio normally has 60% in stocks, for example, now we’d have 58.5%. We do things incrementally; we’ll see how things unfold.
Why lighten up now? As of April 30, Standard & Poor’s 500-stock index is up 7.2% year to date, 18% in the past 12 months and 90% in the past five years—that’s 13.7% annualized. The market is close to an all-time high. Price-earnings ratios are higher than they have been 90% of the time over the past 20 years. No matter how you look at it, share prices are expensive as you stare down the barrel of an eight-yearlong bull market.
Esta historia es de la edición July 2017 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 2017 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
My Top 30 Index: An Update
A year ago, I put together what I called \"my own reinvention\" of the Dow Jones industrial average, the popular 142-year-old large-cap index.
Balance Your Risk and Reward
These new ETFs let you cut stock market losses. But you'll sacrifice some gains.
IS A HYBRID CAR RIGHT FOR YOU?
Hybrids offer a fuel-saving option for drivers who have reservations about all-electric vehicles. But there are trade-offs.
HOW TO REACH YOUR INVESTING GOALS
Patience helped these four investors make their portfolios work for them.
WHERE TO INVEST NOW
Expect a lot of midyear churn, with a rally toward the end of 2024.
TIPS FOR FINANCING A HOME PROJECT
I recently had a call with a client who was looking to fund the construction of a swimming pool at his house.
MORE WOMEN THAN EVER ARE STARTING BUSINESSES
Retail and travel businesses, along with health, beauty and fitness, are popular with women entrepreneurs.
Finding Home Health Care
It’s important to hire a caregiver you trust.
UNDERSTANDING BOND FUND YIELDS
What's a 30-day SEC yield? A trailing 12-month yield? A yield to maturity? We explain what each measure says about an income fund.
ANSWERS TO YOUR QUESTIONS ON STUDENT LOANS
If you have federal student loans, you may benefit from new government policies. Here's what you need to know.