The information technology and health care sectors offer the most attractive valuations for stock investors heading into 2017, as once-favored industries could be on the wane.

Stock selection, in both developed global equity and emerging markets, will become “more crucial” in producing positive returns, said Chris Alderson, head of international equity at Baltimore-based T. Rowe Price. However, investors should expect more modest returns and increased risk in light of the maturation of a multi-year bull market, he added.

Alderson was among several T. Rowe Price speakers who spoke at a press briefing as part of the company’s recent 2017 Global Market Outlook in New York. T. Rowe Price Chairman Brian Rogers also spoke after recently making news by announcing he planned to step down from his additional role as the company’s chief investment officer in March 2017. But he let his colleagues assess the market outlook in detail.

“As the bull market ages, top-down macroeconomic and political news – including the outlook for China, concerns over Europe and volatility in energy and commodity prices – is dominating the global equity markets like never before,” Alderson said. “For patient, long-term investors, such uncertainty typically creates buying opportunities. We remain constructive on global equities, but market returns are likely to be more modest.”

Among U.S. equity markets, the Russell 1000 Growth, Russell Mid-Cap Growth and Russell 2000 Value Indexes appear to have the most attractive valuations among U.S. equity indexes, said Larry Puglia, portfolio manager of T. Rowe Price’s Blue Chip Growth Fund and U.S. Large-Cap Core Growth Equity Strategy.

“S&P 500 earnings should rebound in 2017 and 2018, reflecting a sharp improvement in energy,” Puglia said. “However, analyst projections have sometimes been optimistic, so some caution is warranted.

Paul Dykewicz is the editorial director of Eagle Financial Publications, editor of Stockinvestor.com and DividendInvestor.com, a columnist for Townhall and Townhall Finance, a commentator and the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a Foreword by legendary football coach Lou Holtz.His next local appearances to discuss and sign copies of his book are Saturday, Dec. 10, 11 am, at Curmudgeon Books, Marley Station Mall, 7900 Ritchie Hwy., Glen Burnie, MD, and Saturday, Dec. 17, noon, at Greetings and Readings, Hunt Valley Towne Centre, 118 Shawan Rd., Suit Aa, Cockeysville, MD.Visit Paul’s website at www.holysmokesbook.com and follow him on Twitter @PaulDykewicz.

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