Given the credit crisis and recession worries, it's no surprise investors are wary of stocks.
But not Brian Rogers, chief investment officer at T. Rowe Price, which manages nearly $400 billion. "Good things normally happen from where we are right now, even when there is very little visibility to point to," he says.
Based on a valuation known as earnings yield — the inverse of price-earnings ratio — stocks look more attractive than bonds, as measured by the 10-year Treasury yield. The earnings yield of the S&P 500 is now around 5.5 percent, while the 10-year Treasury yields are about 4 percent.
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But not Brian Rogers, chief investment officer at T. Rowe Price, which manages nearly $400 billion. "Good things normally happen from where we are right now, even when there is very little visibility to point to," he says.
Based on a valuation known as earnings yield — the inverse of price-earnings ratio — stocks look more attractive than bonds, as measured by the 10-year Treasury yield. The earnings yield of the S&P 500 is now around 5.5 percent, while the 10-year Treasury yields are about 4 percent.
Read the complete article
