Four Ways to Play the Next Year

Here's how a quartet of expert asset allocators think a $100,000 portfolio 
should be invested to generate the biggest aftertax return over the next year:


Investor/                  Stocks        Bonds         Cash
Firm

Ernie Ankrim/                0%           30%          70%
Frank Russell Co.

Comments: For cash, pick a tax-free money-market fund; put bonds in a AA-rated, 
intermediate-term municipal fund. If your combined state and federal tax rate 
is 28% or less, use taxable bond and money-market funds 


Jean Brunel/                 18%          52%           30%
J.P. Morgan

Comments: Put 42% in AA-rated, intermediate-term muni bonds and 10% in 
higher-risk bonds, especially emerging markets debt. Foreign stocks take 11%, 
U.S. small-cap stocks 6%, and large U.S. stocks 1%


Mark Keller/                 60%          30%           10%
A.G. Edwards

Comments: Divide stock allocation among a foreign fund (7.5%), a domestic 
small-cap value fund (7.5%), and a domestic large- and mid-cap growth and value 
fund (45%). For bonds, a high-grade, intermediate-term muni bond fund


Brian McMahon/               20%          80%             0%
Thornburg Management

Comments: Choose a municipal-bond fund with an average maturity of 1 to 5 years 
and AA credit quality. For the stock portion, use a closed-end Asian equity 
fund, such as Templeton Dragon or Korea Fund


DATA: BUSINESS WEEK