I am on the other side of T. Rowe Price on this one. Although I agree many stock giants (especially stocks trading on NASDAQ) are overpriced, I think that the market is gradually fixing the overvaluation by itself (like how markets tend to do). I am posting this so that you guys can get other people’s perspectives, but honestly, and you can put me on the record as saying this first, but they’re wrong! Markets and stocks will go up easily and you can invest just as carefree as if you were investing in 2007. (Alright so maybe not that bad…)

Invest with caution was the theme of T. Rowe Price’s annual Investment and Economic Outlook briefing in New York today.

With equity valuations at, or above, long-term averages, the mutual fund giant’s experts stressed that investors need to be careful. At 57 months, the bull market has officially hit middle age. And you can be sure the next five years aren’t going to look like the previous five, during which the S&P 500 Index rocketed 164%.

“Risk/reward is more balanced, and we should be risk aware,” said Bill Stromberg, the Baltimore firm’s head of equity. “Investors are finally rotating back to equities and may be too late.”

Stromberg said signs of speculative excess are appearing with margin debt on the New York Stock Exchange passing $400 billion, more than the peaks in 2000 and 2007. Still, U.S. stocks could move higher it they “truly regain favor with investors. Favor…

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