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Asset Allocation

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To learn this month’s recommended asset allocations of Investment Advisor’s panel of distinguished economists and money managers, click here

Behind the Numbers, with Lincoln Anderson

LINCOLN ANDERSON, LPL’s chief investment officer, has not made any changes in his recommended asset allocation since June. “Until very recently, I’ve felt the bond market was somewhat risky. I just didn’t see that there was very much return potential there, and there was some potential for losses,” he says. “On the other hand, I’ve felt that both the return potential in earnings as well as the low P/Es have stripped quite a bit of risk out of stocks.” As far as predictions for the approaching first quarter, Anderson believes that the big asset classes that have outperformed over the last six years will move lower, and that the trend will be reflected in the underlying sectors. “My guess,” he concludes, “would be that the dollar will be higher, gold and oil prices will be lower, and you’ll see underperformance from energy and materials and outperformance from sectors like healthcare and technology.”–Kara P. Stapleton