Investing strategies, ideas, and trends from our fund managers.

A Lower-Risk Way to Capitalize on Opportunities June 18, 2013 David Giroux, portfolio manager of the T. Rowe Price Capital Appreciation Fund uses a flexible asset allocation approach to find value in the market. Read More

Portfolio Manager Ray Mills and his team search for companies in developed markets and, to a lesser extent, emerging markets that are undervalued compared with the strength of their underlying fundamentals.

Although it is tempting to either take short-term profits or to dismiss this rally as yet another false dawn, the prospects for real change in Japan are better now than at any time in the last seven years.

During the first quarter of 2013, U.S. equity markets were finally able to recover all the ground lost since the 2008-2009 financial crisis, while bond yields continued to compress as the Federal Reserve persisted in its asset purchase plans. So what's next for the U.S. markets?

2013 certainly started out hot, with U.S. equity markets hitting all-time highs. Some developed markets mirrored that success, while emerging markets lagged. Will these trends be sustained, or will other events dominate market news? In a recent interview, David Eiswert, Global Stock Fund manager, discusses the outlook for global markets.

Tax time is here, and investors are not only grappling with their 2012 taxes, but also trying to figure out how they can save on their future obligations. As governments at all levels—federal, state, and local—struggle with profound fiscal imbalances and burdensome long-term debt, higher tax rates are almost certain.

Jerome Clark, portfolio manager of the T. Rowe Price Retirement Funds, aims to help investors sustain their savings throughout a long retirement.

Mention real estate, and many people think of the place they call home. In the investment world, however, the sector encompasses a broad array of commercial opportunities spanning the globe. And, as a sector, U.S. real estate has been among the top performers of the past decade.

The managers of T. Rowe Price's equity funds recently offered their outlooks in shareholder reports covering the 12 months ended December 31, 2012.

The S&P 500 returned 16% in 2012, an above-average performance that David Giroux, lead manager of the T. Rowe Price Capital Appreciation Fund, attributes to improvements in the housing market, falling oil prices, and expectations for stronger Chinese economic growth in 2013.

The managers of T. Rowe Price's fixed income funds recently offered their outlooks in shareholder reports covering the six months ended November 30, 2012.

Bond markets turned in another year of solid returns in 2012, but may pose more risks now than at any time since the financial crisis four years ago. A panel of three senior bond managers discusses what's ahead for credit markets.

After lagging for five years, stocks of financial services companies strongly outperformed the largecap S&P 500 Index in 2012, helped by low valuations, an improving housing market, and easing regulatory concerns. Eric Veiel, who manages the T. Rowe Price Financial Services Fund, maintains a favorable outlook for the sector.

The European debt crisis, the slowdown in China, and other challenges weighed on stocks early in 2012 and may continue to keep markets volatile in coming months. However, corporate profits have generally held up well despite the troubled economic environment, and valuations (stock prices relative to earnings) remain appealing in many markets.

Portfolio Manager Charles Shriver determines the T. Rowe Price Spectrum International Fund's positioning through consultation with the 12-member T. Rowe Price Asset Allocation Committee. The group's collective knowledge of global financial markets and business trends helps determine the fund's exposure to the underlying funds.

The earthquake and tsunami that devastated Japan on March 11, 2011, came after a long period of economic stagnation leading to a 27-year low for the Nikkei 225 Index in 2009. Today, Japan faces a rapidly aging population, a tight job market, and deflation. Despite its challenges, the country remains one of the world’s most important economic engines.

On December 3, 2012, T. Rowe Price launched the Ultra Short-Term Bond Fund as an investment vehicle for those who are willing to accept a degree of price fluctuation in exchange for greater income potential than what is currently available from a money market fund. In this Q&A, portfolio manager Joseph Lynagh discusses the benefits and risks of the new fund.

Recession is the watchword of the year in Europe, as each passing month brings grim news of stagnant growth, weaker manufacturing activity, and accelerating levels of the so-called misery index based on unemployment and inflation, which stood at a 15-year high in August.

Many analysts have warned of a "hard landing" in China for over a year, but recent headlines have turned more negative as evidence grows that China's economy is rapidly slowing. Predictions range from a mild downturn to system-wide collapse for the world's second-largest economy.

The current market climate is challenging for those seeking yield in their portfolios, but there are yield opportunities for those who know where to look. In a recent interview, Dan Shackelford, manager of the T. Rowe Price New Income Fund and the T. Rowe Price Inflation Protected Bond Fund discussed available yield opportunities.

Over the last 20 years, many of the factors driving stock prices have changed significantly. In a recent interview, Larry Puglia, manager of the T. Rowe Price Blue Chip Growth Fund, and Greg McCrickard, manager of the T. Rowe Price Small-Cap Stock Fund, reflect on some of the changes, the challenges, and their outlook for the market.

Global stocks performed well in 2012, but the global economy remains uncertain. Investors are especially focused on China, where there is emerging evidence of economic weakness. In a recent interview, Mark Edwards, a member of the advisory committee of the T. Rowe Price's Emerging Markets Stock Fund, discussed China's economic developments and what they might mean for investors.

On September 13, the Federal Open Market Committee announced a third round of asset purchases, dubbed QE3 by the market. Under the new open-ended program, the Fed will purchase an additional $40 billion per month in agency mortgage-backed securities (MBS).

Municipal bonds have provided stellar returns and attracted increasing investor interest over the past year. The Barclays Municipal Bond Index had a total return of 9.9% for the 12 months ended June 30, 2012, and muni yields have been exceeding Treasury yields this year.

With ultra-low interest rates and bond yields putting income-oriented investors on the financial equivalent of a strict diet, many have turned to dividend-paying stocks to satisfy their hunger for yield. However, they now face the question of whether their new tastes will end up giving some of them a bad case of investment heartburn.

In the current financial environment, yield and income are scarce commodities with long-term government bond yields plunging to multi-decade lows. Globally, investors in search of yield have naturally gravitated to high dividend-paying equities, including the attractive income provided by real estate investment trusts, or REITs.

Dan Martino, who manages portfolios of media and telecommunications stocks for T. Rowe Price, sees many opportunities from new products and services.

Since its 1993 inception, the T. Rowe Price Blue Chip Growth Fund has outpaced its Lipper benchmark. Portfolio Manager Larry Puglia, who's managed the fund from its beginning, credits this success to T. Rowe Price's global research effort.

Some investors looking to boost their current income in today's low interest rate environment are adding exposure to floating rate bank debt. Bank loans, also known as leveraged loans, are essentially a subset of the high yield market. They are generally issued by companies with below investment-grade credit ratings and relatively high debt levels.

For the past three decades, the default decision for U.S. corporations has been to outsource manufacturing to lower-cost countries. Now, however, the cost/benefit equation is changing. Rising wage pressures in Asia and other emerging markets, U.S. dollar depreciation, and overextended supply lines—a risk brought home by last year's Japanese tsunami—have encouraged many firms to "in-source" factory production back to the U.S.

At the beginning of 2012, T. Rowe Price Financial Services Fund manager Eric Veiel believed that financials were poised to perform well amid low valuations, improving U.S. economic and housing market fundamentals, and the potential for greater clarity regarding regulatory changes.

Despite a history of relatively few municipal bond defaults, some analysts have been sounding alarms about the credit quality. Meanwhile, the sector has continued to provide stellar returns in low interest rate environments.

The equity markets have been inconsistent at best in 2012, surging out of the gate but then retreating in the second quarter. This uncertainty has left many equity investors frustrated and with a sense of déjà vu given last year's midyear retreat.

The equity markets have displayed substantial volatility over the last 18 months, reflecting investor uncertainty about the persistence and severity of worldwide economic turmoil. Ray Mills, manager of the T. Rowe Price Overseas Stock Fund, discusses these trends but argues that there are potential investment opportunities in the existing climate.

In an environment where interest rates are low and the stock market changes from day to day, investors have been increasingly hungry for quality investments with relatively high yields. For these investors, bonds issued by emerging market countries could offer an attractive option.

Portfolio Manager Dan Martino and a team of T. Rowe Price analysts apply their deep knowledge in media and telecommunications to provide investors access to a selection of U.S. and international stocks, including shares of search engine firms, communications tower owners, cable companies, and content providers.

The combination of a dramatic rally in the U.S. Treasury market and elevated supply in the municipal bond space has drawn taxable investor interest to the attractive valuations in the municipal market.

The T. Rowe Price Personal Strategy Income Fund diversifies globally among a variety of stocks and bonds, with the objective of generating income first and capital growth second.

The T. Rowe Price Capital Appreciation Fund aims to offer equity-like returns with less price volatility than the overall market by investing in a range of stocks, convertible bonds, debt, and cash. While diversification across asset classes is important, within equities the fund consists of a fairly concentrated portfolio of fewer than 70 stocks.

Energy prices are an ongoing concern for consumers as well as for energy producers and companies in the manufacturing sector. In the past few years, there has been a seismic shift in U.S. energy production as improved extraction methods have increased the supply of natural gas—and, more recently, oil—which is weighing on prices.

Discover the approach that Portfolio Manager Mike Conelius and his group of analysts take in developing the newly launched Emerging Markets Corporate Bond Fund, and find out why the firm is expanding its product offerings in the emerging markets space.