Large-cap U.S. value stocks are currently preferable because they are less vulnerable to slower growth in the economy and are better able to navigate a tricky regulatory environment, says Tom Clarke, portfolio manager for the William Blair Macro Allocation Fund. Clarke is also bullish on European equities, especially in Spain and Italy, because bond yields are coming down and the political risk is lessening. Finally, Clarke says the U.S. dollar has been driven up too much, creating value in emerging currencies like the Indian rupee.

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