Today we report on how the portfolios have performed as of the close of the market on Friday and what the professionals who built them have to say about the market.

The professionals were asked to invest for a fictitious client who is 50 years old, a woman, married (husband is also 50 and both want to retire at 65), with a joint income from all sources of $150,000.

They have a net worth (including their home) of $1.3 million, and their assets owned for investment total $400,000. They are in the 31 percent tax bracket and want this $100,000 to be invested for growth.

These portfolios should not be viewed as recommendations. Selecting the right investment depends on your current situation, goals and tolerance for risk. Before investing you should consult with a professional and read all relevant prospectus.

The theoretical portfolios were limited to purchases of U.S. stocks, mutual funds and certain bonds. A flat $25 commission is charged on most trades. Below we list a sampling of each professional's holdings as of last week.

One participant, Bonnie Rice of Bishop Street Capital Management, decided to withdraw last month.

Questions? Please contact: David Butts, 535-2453 or dbutts@honoluluadvertiser.com.

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THE ADVISOR
PERFORMANCE AND TOP PICKS
	AXP Intermediate Tax-Exempt Fund Class A, INFAX Strong Large Cap, SLCRX Liberty Acorn Fund Class A, LACAX Franklin Mutual Beacon Fund Class A, TEBIX Templeton Foreign Fund Class A, TEMFX
COMMENTS
For all you golfers out there, would you trade 20 yards in distance in order to hit every drive down the middle of the fairway? Or would you rather “full-swing,” and possibly end up in a trap? Conservative golf is not exciting to watch, but golfers who play this way score well on every outing. The advantage of diversifying your portfolio and using an asset allocation strategy is that it is possible to realize gains and preserve principal in times of economic uncertainty. Much like our conservative golfer, this low-maintenance portfolio is performing well, and taking very little risk along the way.

THE ADVISOR
PERFORMANCE AND TOP PICKS
	Geron Corp., GERN Introgen Therapeutics, INGN Imclone Systems Inc., IMCL
COMMENTS
Thankfully, another October has drawn to a close. This portfolio had a decline, primarily due to profit-taking in the biotechnology sector. As I have researched these three companies extensively, my confidence level in their long-term performance remains high. These stocks fit into a risk/reward matrix that is specific to needs of the hypothetical clients and these stocks are NOT appropriate for every portfolio. There are a few stocks that I would like to begin adding to this portfolio when I am more convinced of the economic strength continuing at current levels. As always, do your homework and stay focused.

THE ADVISOR
PERFORMANCE AND TOP PICKS
	Diamonds Trust, DIA Omnicare Inc., OCR Chiron Corp., CHIR Dodge & Cox Stock Fund, DODGX Pioneer High Yield Fund, TAHYX
COMMENTS
The fundamental financial planning question is how to direct our money into coherent service of our life purposes. Money is the vital energy of our material life. As we learn to manage and direct it, we increase the opportunity to live our dreams. For our hypothetical couple, it means always remembering that we are in a decades-long process: “retire” in 15 years and live well an additional 30 to 40 years. Steady growth of capital to support their life purposes is the primary concern. October was volatile, but good. Our core positions remained, while we reallocated capital to two new companies.

THE ADVISOR
PERFORMANCE AND TOP PICKS
	SEI Investments SEIC Chico’s FAS Inc., CHS Home Depot Inc., HD Harley-Davidson Inc., HDI Shuffle Master Inc., SHFL
COMMENTS
This is a great time to start initiating strategies that could reduce your taxes. While you shouldn’t let taxes alone drive your investment decisions, waiting until after Jan. 1 may result in fewer options. “Tax Swaps” (selling stocks for a loss then buying it back or vice versa) need a 30-day waiting period between transactions. If you’re a small business owner, the new Owner-K may increase your tax-deductible retirement contribution substantially.