H.S. Dent Publishing: Dow Poised to Reach New High as Economy Continues to Recover; Leading Indicators Point to Next ``Bubble Boom''; Dow Could Reach 40,000 by End of Decade.

DALLAS -- The U.S. stock market is heading up again. After being oversold in mid-May, the market is poised to hit a new high in the coming weeks. Throughout 2004 the stock market is expected to remain in a relatively tight trading range, reaching a high of 11,300 on the upper end and a low of 9,600 on the bottom. According to the July issue of the H.S. Dent Forecast newsletter, a narrow trading range wears down investors before stocks rally and move upward. Trading could reach as high as 11,300 in the coming weeks, although it may take longer, before pulling back later this year.

"Leading indicators have weakened recently, which is in line with past recoveries," said Harry S. Dent, Jr., president and founder of the H.S. Dent Foundation. Patience is an appropriate strategy for long-term equity investors. Between late summer and fall 2004, there could be one or possibly two more buying opportunities before the markets start to accelerate. The economy will not show stronger growth until mid-2005. "This continues to point to late 2004 as the last great buying opportunity before The Next Great Bubble Boom occurs, which is discussed in our new book due out in September of this year," said Dent.

In the housing market, demand appears to be peaking. Home sales and prices have been stronger than expected as new home sales spiked to a new high in May. Increased volatility in builder inventories suggests a slowing in the residential sector. "Builders, homeowners and residential real estate investors should be increasingly wary moving forward," Dent cautions.

In other news economic news, Rodney Johnson, president of H.S. Dent Publishing examines the effect baby boomers have on colleges. "Baby boomers created incredible waves of growth in our society and continue to do so today," said Johnson. By the time boomers reached college age during the 1960's and 70's the United States enjoyed a tremendous boost in the standard of living. This prolonged period of prosperity resulted in a 75 percent college graduation rate for baby boomers. Recently however population growth has declined. If current trends persist, college enrollment will drop, and "if our economy slows as we forecast, it will happen in conjunction with the decline in applicants to colleges and universities."

During the past decade, college applications, tuitions and fees continued to rise, but, change is coming Johnson predicts. Within ten years, as the economy will start to decline and application rates will fall. As college funding sources dwindle, institutions of higher education will be forced to evaluate how they will operate and survive what could be a long, cold economic winter.

Despite the bad news about Iraq, oil prices, residential real estate and the greater likelihood that Bush may not be re-elected, Dent's economic models continue to forecast good news for equity investors. The Fed Model indicates the greatest buying opportunity since the early 1920s for stock market investors from late 2002 into 2004. "From 2005 on our cycles across the board suggest strongly that we will be entering a steeper ascent towards 30,000 to 40,000 on the Dow by the end of the decade," said Dent.

About H.S. Dent Publishing

H.S. Dent Publishing (www.hsdent.com) of Allen, Texas helps people understand change and prepare for its arrival through a variety of Dent publications, including the monthly H.S. Dent Forecast. The Dent methodology, which is based on the study of demographics, or the study of whole populations and their spending habits, takes financial forecasting out of the world of theory and into the realm of real-world consumer behavior allowing investors to make intelligent and informed economic decisions about their future.