The market is in an uncertain state as we head into the new year. With the S&P 500 and Nasdaq Composite down 20% and 34% respectively in 2022, investors are in a cautious mood and wondering whether the market will rebound in the year ahead or if it will be another year of further losses.

I don't know the answer, but I do know that investing in stocks with undemanding valuations and solid dividends gives investors a margin of safety, which I think is the right approach for this market environment.

One stock that looks particularly well-suited for this approach is omnichannel home goods and furniture retailer Williams-Sonoma (NYSE: WSM). The shares are cheap and pay a market-beating dividend -- and the business has plenty of upside potential, too.

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Source Fool.com