Ladies and gentleman, the new year is just around the corner and with the market taking a big hit in recent months, yet putting up some sharp numbers over the past few days, its time to start looking ahead to what will be the smart way to allocate your portfolio for 2008.

With that said, my research and avid understanding of the current markets lead me to believe you should be switching from “VALUE” to “GROWTH”.

That means you should look for stocks that offer strong earnings growth potential. Even with the economy going through a tough stint; growth companies will shoot for high earnings. It is true that value has flattened growth stocks in the past few years, but in 2008, growth is where you want to be.

On the mutual fund side, I love the following plays: T Rowe Price New America Growth Fund; ticker PRWAX, with its YTD return of 20.08% and 1yr return of 23.16% and 3yr return of 13.00%, it’s a great place to put your money.

On the stock side look for continued performance from companies such as UBS (UBS), GOOGLE (GOOG) and Danaher Corp (DHR). These will be good fundamental plays to add to the portfolio and should keep your portfolio looking healthy.

Cheers,
Anthony Colasanto