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KFS CHIEF PORTFOLIO STRATEGIST TARGETS BEST INVESTMENT OPPORTUNITIES FOR THE REMAINDER OF 1992

 KFS CHIEF PORTFOLIO STRATEGIST TARGETS BEST INVESTMENT
 OPPORTUNITIES FOR THE REMAINDER OF 1992
 CHICAGO, July 6 /PRNewswire/ -- The remainder of 1992 should offer investors excellent opportunities in long-term fixed income investments and growth stocks, says Jim Neel, chief portfolio strategist for Kemper Financial Services, Inc.
 "During the second half of 1992, we believe the opportunity for long-term instruments will be stronger than ever," said Neel. "If the current slow-growth, low-inflation recovery remains intact, short-term rates are unlikely to rise as fast as they have in other recoveries, making longer maturities that much more attractive."
 Today's yield curve, at its steepest point in 30 years, is another compelling reason for investors to increase their maturities.
 The yield curve's extreme steepness indicates that investors currently stand to reap substantially more income at longer maturities.
 In the equity markets, Neel's first and second quarter outlook predicted that cyclical stocks would enjoy their normal seasonal run, but would succumb when the slow economy contributed to disappointing earnings. Through the first half of the year, however, cyclicals have shown more strength while growth stocks have shown weakness. Neel expects that this will change.
 "Given our economic forecast, we simply don't believe that cyclicals can meet the high expectations of investors," he said. "The recovery will likely remain slow by historical standards. As a result, we believe the growth stock cycle during the last few years of slow economic growth will continue."
 In addition, the correction in growth stocks has led to some excellent valuations on some very solid growth companies, such as Merck & Co., Pfizer and Philip Morris.
 Factors that may negatively affect this forecast include a strong economic upturn and a rise in inflation. However, Neel doesn't feel such events are likely.
 Another important factor to consider is the outcome of the uncertain presidential race.
 "Until we see the emergence of one dominant candidate, the market will continue to churn," Neel said. "After a candidate is identified, the market may present a big growth opportunity for investors."
 Kemper Financial Services, Inc. is one of the nation's largest money managers. Together with its affiliates, KFS has more than $67 billion in assets under management. It is part of the investment services segment of Kemper Corp., a nonoperating holding company with major subsidiaries in asset management, securities brokerage, life insurance, reinsurance, property-casualty insurance and risk management service.
 -0- 7/6/92
 /CONTACT: Marilyn Morrison, 312-499-8467, or Steve Radis, 312-499-8393, both of KFS/
 (KEM) CO: Kemper Financial Services Inc.; Kemper Corp. ST: Illinois IN: FIN SU: ECO


SM -- NY026 -- 6595 07/06/92 11:52 EDT
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Publication:PR Newswire
Date:Jul 6, 1992
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