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COWEN & COMPANY SEES CONTINUED BULL MARKET, DOW HITTING 3500; SMALL CAPITALIZATION STOCKS WILL OUTPERFORM LARGE ISSUES

 COWEN & COMPANY SEES CONTINUED BULL MARKET, DOW HITTING 3500;
 SMALL CAPITALIZATION STOCKS WILL OUTPERFORM LARGE ISSUES
 NEW YORK, Jan. 23 /PRNewswire/ -- Cowen & Company's first strategic economic forecast, being released to clients today, predicts that the bull market is entering a second phase, driven by companies with strong earnings capabilities in contrast to the interest-rate-driven upturn that characterized the first leg of the bull market.
 Richard J. Hoffman, Cowen's investment strategy director, said, "Smaller stocks with market values below $500 million will continue to outperform the bigger issues in a muted economic recovery this year." Hoffman added that "earnings will be stimulated by fiscal policy and disinflation factors" with resultant "earnings acceleration projected for the second half of 1992 and 1993."
 Hoffman foresees a new "Nifty Fifty" of growth stocks with double- digit earnings potential driving the market's gains, while the economy achieves overall growth in the '90s at a rate only about half the level of the prior decade. Among the industry groups Hoffman favors are transportation, semiconductors, computers and telecommunications.
 Other sectors that should be able to capitalize on long-term primary demand resulting from fundamental demographic trends, what Hoffman calls the "Greying of America," include drug stocks and other health services, cosmetics, restaurants, leisure stocks, home furnishings and financial services.
 Hoffman bases his favorable economic outlook on positive signals from 21 of the 30 indicators Cowen uses to track financial, inflation, consumer, business, valuation and other trends, pointing to a "95 percent chance of a recovery" in the U.S. economy this year.
 Cowen & Company is Wall Street's leading health care and technology research firm. In corporate finance, Cowen is one of the top 10 underwriters of equities in the health care and technology sectors. Cowen also has a significant presence in correspondent services and asset management. Cowen serves institutional and industrial clients domestically and internationally through 17 offices in the United States and abroad.
 -0- 1/23/92
 /CONTACT: Robert Hubbell, 212-704-8255, or Mary Ellen Wiedenbeck, 212-704-8104, or Matthew Harrington, 212-704-8103, all of Edelman Public Relations Worldwide, for Cowen & Company/ CO: Cowen & Company ST: New York IN: FIN SU: ECO


CK-OS -- NY062 -- 2830 01/23/92 13:04 EST
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Publication:PR Newswire
Date:Jan 23, 1992
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