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MERRILL LYNCH ISSUES NEW LONG-TERM INVESTMENT FORECAST IDENTIFYING TREND THEMES FOR THE DECADE OF THE 1990s

 NEW YORK, Dec. 6 /PRNewswire/ -- Merrill Lynch today profiled seven "themes" that investors can use as guidelines as they seek investment opportunities during the decade of the 1990s.
 Speaking along with other top research professionals at the firm's annual Global Economic Press Conference, Senior Investment Advisor Robert J. Farrell said: "Theme investing is our attempt to identify long-term trends in the economy and the markets that will give investors the best return on their capital."
 In order to do that, Mr. Farrell has identified the following themes for the 1990s:
 -- It will be a decade of producer assets -- capital goods and technology.
 -- It will be a decade of small companies where venture capital investing will grow.
 -- The low-cost producer will gain market share through increased productivity and efficiencies.
 -- It will be a decade of international investing.
 -- The 1990s will be a decade of restructuring and redefining the obsolete large company.
 -- It will be a decade of privatizations, less government, increased efficiencies and access to capital.
 -- Finally, it will be a decade of instantaneous information access through improved modes of communications and interactive media.
 Mr. Farrell explained that the investment themes are based on the following underlying assumptions for the 1990s: economic growth in developed countries such as the United States will be below average; consumers will save more and spend less of their income than they did in the 1980s; developed countries will export capital to faster growing developing countries; deflationary trends in developed countries will be offset by growth in emerging nations; and reflation will be a periodic concern in the United States as long as more government is embraced as a solution to our problems.
 "It is important to recognize that the world is dynamic and changing and that it is just as crucial to abandon old exploited concepts and trends in a timely fashion as it is to recognize new ones," said Mr. Farrell.
 "In the last 50 years we have seen a regular pattern of change every decade that has led to new leadership and different asset classes that gave the best return," added Mr. Farrell. "The 1990s, therefore, in our opinion, will be just as different from the 1980s, as the 1980s were different from the 1970s, requiring new strategies."
 -0- 12/6/93
 /CONTACT: Fred Yager of Merrill Lynch, 212-449-7355/


CO: Merrill Lynch ST: New York IN: FIN SU: ECO

SH-TW -- NY017 -- 0640 12/06/93 09:10 EST
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Date:Dec 6, 1993
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