Where To Invest

Only six months ago, the pros were lowballing their forecasts for 1995. After the shellacking they took last year, most would have been happy to score single-digit gains in stocks and bonds--and they planned their strategy accordingly. But markets have a way of turning pros into pikers. Indeed, perhaps because expectations were minimal, the markets raced ahead at maximum speed. "Was anybody forecasting 4500 on the Dow, 6.8% on the long bond, 80 yen to the dollar?" asked Nicholas Knight, chief strategist at Nomura Research Institute Ltd., during a speech given to a recent gathering of investment managers in Zurich. The response: a few embarrassed giggles.

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