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DREYFUS ECONOMIST DISCUSSES STRONG INTEREST IN MIDCAP FUND

 DREYFUS ECONOMIST DISCUSSES STRONG INTEREST IN MIDCAP FUND
 NEW YORK, Feb. 6 /PRNewswire/ -- Why have small-cap and mid-cap stocks outperformed the larger stocks recently?
 Richard B. Hoey, chief economist for The Dreyfus Corporation, addressed what he sees ahead for the Standard & Poor's 500 and MidCap 400 indexes in a presentation to the Association of Individual Investors here last night.
 Since the Dreyfus Corporation first offered its "People's Midcap 400 Index Fund" on June 19, 1991, the net asset of the fund has risen from $12.50 to $15.16 as of Feb. 4, 1991, a gain of 22.4 percent.
 According to Hoey, there are a variety of reasons why smaller and mid-cap stocks have outperformed large-cap stocks in the last several quarters.
 "Mutual fund managers have always been more aggressive in smaller and mid-cap stocks than most pension managers," said Hoey. "The stock mutual funds have had strong inflows of funds to put to work recently. In addition, the pension managers are becoming more active in mid-cap stocks."
 "Foreigners, who traditionally prefer to buy larger capitalization stocks haven't been aggressive buyers of U.S. stocks in recent quarters," Hoey continued. "The recent bull market has been driven by purchases by domestic accounts who are more likely to consider mid-cap as well as large-cap stocks."
 Hoey also said that investors have been drawn to mid-cap stocks in part because "on average they have a higher rate of return on equity and lower debt-to-equity ratios than does the average stock in the Standard & Poor's 500 Stock Index."
 Hoey also reiterated his view that despite the high valuation levels that stocks have reached, "the U.S. stock market is in a classical cyclical bull market."
 "The bull market won't be over until conservative Midwest portfolio managers are seen baying at the full moon," he concluded.
 The AAII platform, entitled, "Index Investing, A Hands-Off Approach to Above-Average Performance?" comes just before the scheduled launch next week for derivative products based on the new S&P MidCap 400 Index. The American Stock Exchange (AMX) will trade stock options and the Chicago Mercantile Exchange (CME) will trade futures and options on futures on the Index.
 The Dreyfus Corporation is administrator for People's S&P MidCap Index Fund. Manufacturers Bank, N.A. is the fund's index fund manager. The minimum initial investment is $2,500 and additional investments of $100 can be made at any time. Investors should read the prospectus carefully before investing.
 The Dreyfus Corporation, organized in 1947, is one of the nation's leading financial services companies. Headquartered in New York City, Dreyfus manages and administers more than $80 billion in over 100 different fund portfolios for more than 1.9 million investor accounts nationwide.
 This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 -0- 2/6/92
 /CONTACT: Diane Coffey of Dreyfus Corporation, 212-922-6070, or Don Middleberg, 212-888-6610, for Dreyfus/
 (DRY) CO: Dreyfus Corporation ST: New York IN: FIN SU:


KD-KW -- NY096 -- 7897 02/06/92 16:32 EST
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Publication:PR Newswire
Date:Feb 6, 1992
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