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PAINEWEBBER CALLS FOR 3600 TO 3750 DOW IN 1993; ANY POST-ELECTION SELL-OFF WOULD CREATE BUYING OPPORTUNITY

 PAINEWEBBER CALLS FOR 3600 TO 3750 DOW IN 1993;
 ANY POST-ELECTION SELL-OFF WOULD CREATE BUYING OPPORTUNITY
 NEW YORK, Nov. 4 /PRNewswire/ -- Edward M. Kerschner, chairman of PaineWebber Incorporated's investment policy committee said, "The Clinton victory was hardly a surprise given the magnitude of his lead in the pre-election polls, however, some investors probably were still hoping George Bush could pull off an upset win, so it's still possible to see a minor sell-off soon after election day. The bond market may likely trade down a little further, (and yields could approach 8 percent until the market is convinced that Clinton and inflation are not synonymous), although municipals could be relatively strong because higher marginal tax rates enhance the value of the tax free feature."
 According to Kerschner, any sell-off in stocks would be a buying opportunity because a Clinton administration is fundamentally bullish, not bearish, for the stock market for several reasons:
 -- Inflation is low.
 -- The Fed is accommodative.
 -- Productivity is rising.
 -- The Cold War in won.
 -- Europe may be slipping into a recession.
 This bullish case supports our call for a 3600 to 3750 Dow in 1993.
 Who are the winners and losers of Clintonomics? "In the near-term, the boost in consumer confidence should aid selected consumer cyclicals; but their 'staying power' is questionable. Longer-term U.S. demographics and debt are likely to keep this engine of domestic economic growth in low gear. The most obvious and enduring selections are likely to be infrastructure stocks," says Kerschner.
 Good plays on building infrastructure are Ingersoll-Rand, Caterpillar and Indresco. Heavier spending on infrastructure will also be bullish for New Jersey Steel and Birmingham Steel. Other industrials, like Allied Signal and General Electric, could also get a boost from the general pick-up in activity.
 Education stocks would also benefit. A winner would be Paramount because of its publishing division.
 A Clinton-Gore victory should also bode well for environmental stocks like the Allen Group and Waste Management.
 A post-election consumer confidence rise should make for a better than expected Christmas for retailers: Wal-Mart, Toys R Us, Clothestime and Charming Shoppes. Also, General Motors, Owens-Corning and PPG could benefit.
 For more information about the stocks mentioned or a copy of the research report, "Quadrennial Quandary Concluded?" please contact your PaineWebber investment executive.
 PaineWebber Incorporated is one of the nation's leading full-service securities firms with more than 270 offices and 5,000 investment executives nationwide.
 -0- 11/4/92
 /CONTACT: Beverly T. Spano of PaineWebber Incorporated, 201-902-6775, or Jeffrey Z. Taufield of Kekst and Company, 212-593-2655, for PaineWebber Incorporated/
 (PWJ) CO: PaineWebber Incorporated ST: New York IN: FIN SU:


SM-PS -- NY015 -- 2361 11/04/92 09:52 EST
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Date:Nov 4, 1992
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