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AMERICANS BELIEVE STOCK MARKET'S APPEAL HAS NOT INCREASED SINCE 1987, BUT INVESTORS MAINTAIN STRONG COMMITMENT TO EQUITIES

AMERICANS BELIEVE STOCK MARKET'S APPEAL HAS NOT INCREASED SINCE 1987,
 BUT INVESTORS MAINTAIN STRONG COMMITMENT TO EQUITIES
 NEW YORK, Oct. 8 /PRNewswire/ -- Five years after the U.S. stock market suffered its biggest one-day point decline ever, nearly eight of 10 Americans believe the U.S. stock market is no more attractive today than it was five years ago. At the same time, nearly half of Americans who are investors say their portfolios are more heavily allocated to equities today than they were in late 1987, according to a national survey released today by Ogilvy Adams & Rinehart, a leading international communications firm.
 The survey also found that -- despite the proliferation of foreign stock listings and international mutual funds -- investors look primarily to U.S. stocks for investment opportunities.
 "Americans in general are concerned about the risks of stocks, but they strongly believe the U.S. equities market is the place to be," said John Margaritis, president and chief operating officer of Ogilvy Adams & Rinehart. "Companies that want to attract investors need to ensure that the perception of strong company fundamentals overcomes this built-in concern about the market in general."
 "Five Years After the Crash: A Survey of Investor Attitudes" was conducted for Ogilvy Adams & Rinehart by telephone during September with 1,250 adults participating.
 Forty-one percent of those surveyed said the U.S. stock market is less attractive today than five years ago, with 37 percent saying it is about as attractive. Just 14 percent said the market is more attractive. The margin of error for the overall survey sample is 2.8 percent.
 Fifty-three percent of respondents said they personally control investments. Of these investos?, 47 percent said their portfolio is more heavily allocated to stocks than five years ago, and 26 percent said the allocation is about the same. Only 18 percent said their stock allocation is lower today than in 1987. The margin of error for the investor sample is 4 percent.
 The 41 percent of respondents who said the stock market is less attractive now than five years ago cited as primary reasons for concern high risk (mentioned by 26 percent), a lack of investment information (12 percent) and insiders' advantages (12 percent). The 14 percent of respondents who said the market is more attractive today cited better performance relative to other investments (25 percent) and more investment products (24 percent) as primary reasons.
 Investment Criteria
 When asked their most important reason for investing in a particular stock, 20 percent cited high dividend yield, 18 percent said company earnings growth and 16 percent identified company size and reputation. In a similar survey conducted by Ogilvy Adams & Rinehart five years ago, 22 percent said low stock price would be their most important investment criterion; in the current survey, just 3 percent said that would be their key reason.
 Domestic Focus
 Investors expressed a strong domestic orientation when asked where they would be most likely to invest substantial new assets during the next six months. Only 1 percent of respondents cited foreign stocks; foreign stock mutual funds, foreign bonds and foreign bond mutual funds attracted even less interest. In contrast, 11 percent said they would invest in U.S. stocks, 8 percent would choose U.S. stock mutual funds and 7 percent would pick U.S. bonds. Nine percent cited real estate.
 "Although the globalization of investment markets is a well established trend, American investors are focusing hardly at all on overseas opportunities," said Mr. Margaritis. "This finding suggests that overseas companies looking to tap U.S. investor capital need to be particularly aggressive in their outreach here."
 Quality of Information
 Of those individuals who are currently invested in equities, only 18 percent term as "excellent" the quality of information they receive from companies whose stock they own. Forty percent said the quality is "good," 27 percent said it is "only fair," and 4 percent said the information they receive is "poor."
 Ogilvy Adams & Rinehart specializes in corporate public relations, financial communications, health and medical communications, public affairs, strategic marketing and special situations. The firm has offices in New York, Chicago, Los Angeles, Washington, Los Angeles, Brussels, London, and Paris.
 The survey was conducted for Ogilvy Adams & Rinehart by Cambridge Reports/Research International, Cambridge, Mass. Copies of a survey report, "Five Years After the Crash: A Survey of Investor Attitudes," are available from Ogilvy Adams & Rinehart at 708 Third Ave., New York, N.Y. 10017, 212-557-0100.
 -0- 10/8/92
 /CONTACT: Christiana Allaire, 212-880-5216, or Jim Marren, 212-880-5359, or Michael Geczi, 212-880-5357, all for Ogilvy Adams & Rinehart/ CO: Ogilvy Adams & Rinehart ST: New York IN: FIN SU: ECO


TS -- NY013 -- 0265 10/08/92 08:52 EDT
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Date:Oct 8, 1992
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