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Preparing for a lower rate of inflation.

Reevaluate the asset mix in your portfolio to account for a changing economy

Diversifying investments across several asset classes can enhance investment returns and manage risk in a portfolio. If you are a long-term investor, you must deploy your financial resources effectively and adopt a disciplined investing strategy that includes effective risk management. According to David Alger, president and chief investment officer for the Alger Fund, the rate of inflation in this country is essentially dropping and, as a result, interest rates will fall precipitously later in the year. Asset allocation models should be compiled taking into consideration this factor, as well as current market, economic and political conditions. These allocations are presented only as examples and can be tailored according to your changing needs. The pie charts at right illustrate how four different hypothetical investors might allocate their investments based on their goals and tolerance for risk:

Mark M. Spradley, Legg Mason Wood Walker, Bethesda, Maryland

[Graphs OMITTED]
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Title Annotation:asset allocation management
Author:Spradley, Mark M.
Publication:Black Enterprise
Article Type:Brief Article
Geographic Code:1USA
Date:Oct 1, 1999
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