Last year was one for stock market record books as index fund buyers added 30% to their nest eggs while many hedge fund managers under performed. Oddly, some of the smartest investment advisors believe that despite the run up, selected equities still look attractive. T. Rowe Price’s Head of U.S. Equities John Linehan is taking a cautiously bullish approach: “Moving forward, U.S. stocks are unlikely to match their recent strength…On the plus side, corporate health remains strong and valuations are neutral. There are still attractive areas, such as companies that are benefiting from the reindustrialization of America. Market tailwinds and headwinds are now more balanced, so we believe it’s time to be cautious.” Linehan is essentially saying that 2014 will be a stock picker’s market. His T.Rowe Price Value Fund , for example, holds among its top holdings Irving,TX’s Flowserve Corp.(FLS) , a maker of pumps, valves and seals used in a host of industries. It...
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