For the first time in a decade, our model portfolio is no longer recommending an overweighed position in technology.

If crude prices are near their trough, earnings should start to flatten out and move up.

Investors believe it is simply not acceptable to be environmentally irresponsible.

If undertaken, it would be aimed at extending, not ending, the current economic expansion.

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.

Opportunities are likely to present themselves, especially given a 6- to 12-month time horizon.

Ours is an economy that is solid at its core.

Equity prices can rise, despite decelerating profit growth and moderately rising interest rates, if investors expect economic expansion to continue. In previous such cases, stocks outperformed bonds, often notably.

Corporations in the United States continue to generate good profits. Stock prices are below where they might be based upon the fundamentals for 2005.

We don't think so, and continue to assume long-term earnings growth of 7 percent-to-8 percent in our valuation model.