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OPPENHEIMER MANAGEMENT PREDICTS STRONG BULL MARKET IN 1992 WITH DJIA REACHING 3600 BY YEAR-END

 OPPENHEIMER MANAGEMENT PREDICTS STRONG BULL MARKET IN 1992
 WITH DJIA REACHING 3600 BY YEAR-END
 NEW YORK, Dec. 3 /PRNewswire/ -- This year's strong stock market advance will continue in 1992, boosting the Dow Jones Industrial Average to 3600 by year-end, predicted market strategists at Oppenheimer Management Corporation (OMC).
 Growth in corporate profits of 20 percent - 25 percent will stoke the 1992 market rise, say OMC experts, who view the mid-November falloff as an inevitable short-term correction.
 "Hard as it is to keep cool in the face of today's fluctuating markets and volatile international politics, investors shouldn't let the heat force them out of this bull market's rich kitchen," said Jon S. Fossel, chairman and chief executive officer of OMC. "Be careful, not cowardly -- that's our investor watchword for 1992."
 Fossel noted that bull markets since World War II have typically risen nearly 100 percent from the preceding market low. As the current market is now up only about 22 percent since its bottom of October 1990, he expects to see an upswing over the next several years.
 Fossel disagrees with claims that the market is grossly overvalued. "Currently peak valuations are based on trough earnings of the current recession," he said. "In 1962 and 1987, the last dates that market P/Es approached current levels, the peak valuations rested on peak earnings -- a crucial difference." In addition, interest rates are now far lower than in 1987.
 "Chicken Littles are disturbed by the heated IPO market," added Fossel, "but most of the excitement has occurred in the biotech sector, an area with tremendous long-term potential."
 In addition to forecasting a DJIA of 3600 and rising corporate profits of 20 percent - 25 percent, OMC made five additional predictions for 1992:
 -- Economic recovery will become clear early in the year;
 -- Inflation will stay below 4 percent and short-term interest rates under 6 percent;
 -- Fixed income markets will remain stable;
 -- Small stocks and cyclicals will lead the market; and
 -- Foreign stock markets will again outperform U.S. exchanges.
 Economic, Bond Market Outlook
 OMC experts predict that the economy's strength will make itself clear during the first six months of 1992.
 At the recovery's beginning, real interest rates will remain low, creating a positive outlook for fixed income investments over the next year. Commented Paul E. Suckow, executive vice president and director of fixed income securities, "While we're confident the U.S. is over the hump economically, we believe that upward interest pressure won't build before the fourth quarter."
 OMC strategists forecast that total returns in the fixed income arena next year will approximate the yields available in the market today.
 The strongest fixed income sector will again prove to be high-yield issues. If the dollar stays stable, foreign corporate and governmental bonds will also benefit. OMC experts anticipate low volatility from domestic high-grade and treasury securities.
 The Stock Market
 Small-cap equities and cyclicals historically pace the stock market at the crest of economic upturns, and that's what OMC experts predict for 1992.
 Said Robert C. Doll Jr., senior vice president and director of domestic equity investments, "The NASDAQ index already reflects a small- stock rebound and we expect that to broaden throughout next year."
 Foreign stocks outperformed U.S. equities throughout most of the 1980s, and OMC strategists don't see that changing in 1992.
 Kenneth J. Oberman, senior vice president and director of global equity investments, believes that overseas markets are "dirt-cheap" when evaluated on a price-to-operating-cash-flow basis. "European markets -- particularly Germany's -- are bursting with giveaways. And the Far East still harbors huge growth prospects," said Oberman.
 Oppenheimer Management Corporation manages more than 50 mutual funds with assets in excess of $18 billion in over 1.5 million shareholder accounts. OppenheimerFunds are distributed by Oppenheimer Fund Management, Inc., Two World Trade Center, New York, NY 10048-0203.
 -0- 12/3/91
 /CONTACT: Mark Edison of Oppenheimer Management, 212-323-0534/ CO: Oppenheimer Management Corporation ST: New York IN: FIN SU: ECO


GK-OG -- NY010 -- 8604 12/03/91 08:47 EST
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Date:Dec 3, 1991
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