However, Holcomb cautioned against expecting a repeat of the fat returns that were seen the years after the crash if 2008.
“Looking ahead, our broad view is cautious," she said. "And this view really manifests itself in an expectation of lower equity returns going forward, but not necessarily negative returns.”
The economy’s growth should be modest, but some of these numbers will be affected by potential “pro-growth policies coming out of Washington,” she said.
Holcomb noted that more active managers are starting to outperform indexes.
As for which strategies and sectors showed the most promise, Holcomb said T. Rowe Price is “generally neutral” on growth versus value investing styles. But the tech, health-care and telecom sectors still have attractive valuations, according to the company.
Even though energy has been beat up over the past 18 months, Holcomb said, “energy valuations remain elevated.”
Overall, S&P 500 earnings growth should continue next year and into 2019, she said, but investors should be picky.
Indeed, she said that “it is our belief that in an environment like this, stock selection is key and disciplined active managers are best positioned to navigate the uncertainty.”