Concerns, however, remain on the level of the national debt, inflation and lack of investment.

There are going to be major demands for wage increases and thus causing further inflation.

They (IMF) will be very concerned with the upsurge of inflation. The other problem will be that the government still maintains 18 products under price controls.

The message should be to encourage foreign investment and they (investors) will obviously not be encouraged by these moves.

We have committed to the endowments, which is saving, we've committed to capital, which is investment, we've committed to inflation-proofing the Heritage Fund . . . and there is the very real possibility that we could add more dollars in that area, ... So we're talking about a small amount of this surplus, really.

The basic conclusion is that 1999-2000 will bring further gains in corporate profits, mild-mannered inflation and a generally favorable outcome for equity prices. Increasing confidence that the economic expansion will continue through our newly-extended forecast horizon encourages a modest upward revision in stock price targets.