Where to Put It? Investment strategies for uncertain times.

• Author: McKimmie, Kathy
• Position: Investments

Two years ago, you could have thrown darts and done well," says Mike Bosway, president and CEO of City Securities, Indianapolis. "The movement of the market made geniuses out of a lot of people."

Some of those people made their stock picks directly over the Internet. "When the bubble bursts they don't know what they really own and aren't analytical. The actions of the marketplace, especially in tech, prompted people to seek advice again." Bosway says his clients never fully left, but the ease of Internet access and lure of a low-cost transaction was attractive for many who had no real plan and operated on "a hot tip here and there,"

"Investors, as investors, are so different than they are as consumers-- exactly opposite," says Bosway. "Investors buy when the prices are going up, consumers want items on sale." The carefully laid plan can go out the window if emotions take over.

Despite the impact of the September 11 terrorist attacks, "all the things are set for the stock market to do well, but people are reluctant to put money in the market," says Jim Kocon, principal with Peerson and Co., a discount brokerage firm in Whiting. When the Fed starts cutting rates, there's a year time lag until, it hits the market, he says, "September 11 just delayed that a bit."

How far can the Fed cut rates, and what difference will it make? "Look at Japan," says John Silletto, senior vice president and chief investment officer for Indiana Capital Management in Fort Wayne, part of Old National Trust, headquartered in Evansville. "You can cut rates all the way to zero, but unless you can get individuals and corporations to spend money, the rates can only do so much."

Gregg Jehl, senior vice president and regional sales manager for Wells Fargo Private Client Services in Fort Wayne, says although the mood of his investors is definitely cautious, 80 percent of their transactions since September 11 have been purchases of securities, compared to 65 percent normally. "There is cautious optimism," he says, with most of the selling by institutions rather than individual investors.

AN ASSET-ALLOCATION FORMULA?

On the proverbial question of asset allocation, the advisers differ a bit. Some, like Kocon, use age as a guide for guaranteed investments. For example, if you are 50 years old, you should have 50 percent in. certificates of deposit and 50 percent in stocks or mutual funds.

Timothy P. Robinson, senior vice president investments and insurance with Irwin Union Bank...