The stock market rally that began in 2009 will continue next year, but at a slower pace, T. Rowe Price strategists said Tuesday.

Investors will have to be careful in finding winners, they noted.

“I’m optimistic that we will see continued growth.” said Alan Levenson, chief U.S. economist for Price, adding that he expected economic expansion in most of the world. “We will see people being put back to work.”

T. Rowe Price officials generally painted a rosy picture of markets here and abroad in 2018 during a press briefing in Manhattan.

One of Levenson’s colleagues, Ann Holcomb, Price’s portfolio manager for U.S. equities, noted that she is “somewhat cautious” about the market, but added “we do see earnings growth continuing.”

She said S&P 500 values are at a premium compared to historical averages, so investors should be careful when selecting stocks. But many signs are good, she noted.

“CEO confidence is on the rise,” Holcomb said. She said that is “perhaps due to the expectation of pro-growth policies being enacted. This is notable because we have seen that over time increased CEO confidence typically does result in increased investment spending.”

But could the Federal Reserve end the stock market party of the last nine years?

Price officials said that is unlikely. The Fed’s slow unwinding of its easing policies, moving interest rates from historic lows, will not hurt the market, they said.

That was reflected in T. Rowe Price's outlook summary, which stated, “moderately rising short-term interest rates should not impede U.S. equity returns.”

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.”