Behind the Numbers, with Lincoln Anderson

So far this year, LPL’s chief investment officer, Lincoln Anderson, has not made any changes in his recommended asset allocation, keeping the highest percentage in stocks, with 80%. “I have a high allocation to stocks because the overall market is very reasonably priced with low risk–the S&P PE is between 15 and 16. I consider this low,” he explains. Additionally, there has been a huge run in value, relative to growth, according to Anderson. “Value has outperformed growth over last 6 years,” he notes. “And 2007 will be the year when growth will start to come back.” Anderson is leaning towards the technology, private healthcare (the part that isn’t too open to political attack), and telecom sectors, as well as the growth part of financials.