From the December 2004 issue of Investment Advisor • Subscribe!

Behind the Numbers, with Sam stoval

Standard & poor's chief investment strategist stresses that this month's change in allocation both corrects an earlier misstatement and represents a redefinition of the role of cash and bonds. "We thought the market would advance regardless of who was elected because the uncertainty would have been resolved. So we moved total stocks up from 50% to 60%." Stovall notes that the equity allocation includes 45% U.S. stocks and 15% foreign stocks. "You want to have some international exposure, and we think that the weakening dollar will also benefit returns." As for bonds, the emphasis is on durations in the one- to five-year range.--Robert F. Keane

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