BULL MARKET CONTINUES INTO NEXT CENTURY

The bull is on the run as the nation's stock market races toward the 21st century, financial analysts say.

"The market is getting pretty lofty," said Bart Ozbun, manager of the local Merrill Lynch investment office.

He and other stockbrokers predict the good times will continue on Wall Street.

The Dow Jones industrial average has been around 6,800. Stockbrokers and economists say it could reach the 10,000 level by the start of the next century.

"Everybody is amazed at how well the stock market is doing," said Southeast Missouri State University economist Terry Sutton.

"Maybe the end of the millennium is not as bad as everybody thought," he said.

There doesn't appear to be any underlying problems that could derail the market.

"Everybody seems to be wanting to get on the bandwagon," Sutton said.

The stock market first topped the 1,000 level in the early 1970s. It stayed around the 1,000 mark for about 15 years.

But in the past decade, the Dow has soared. It rose from 2,000 in January 1987 to 4,000 in February 1995. In 1996, it broke the 6,500 mark. Today, it is well on its way toward 7,000.

"What really drives the stocks is the earnings that companies have," said stockbroker Joe Domian of Edward Jones in Cape Girardeau.

"If earnings look good, then the stock will continue to go up," he said.

Low inflation is a key factor. "Historically, we have gone through long periods of time with relatively low inflation," he said.

The policies of the federal government and the Federal Reserve also affect the market, he said.

The market will do well if the Federal Reserve keeps inflation under control and the economy continues to grow at a steady pace, said Ozbun.

If Social Security is privatized, the market could grow dramatically, Ozbun said.

Domian said the world is moving to more open markets. That leads to more competition and increased efficiency in the marketplace, he said.

In the 1960s and 1970s, real estate, gold and raw materials were the investments of choice, said Marsha Limbaugh, branch manager of the A.G. Edwards investment firm in Cape Girardeau.

Domian said tax laws at one time favored real estate and discouraged stock investments. But that has changed.

As the babyboomers get closer to retirement, they will be looking to save more money. They will invest in the stock market, he said.

A.G. Edwards' chief economist Raymond Worseck said the bull market is being driven by technological advances in everything from computers to cellular telephones.

The market has experienced three major bull markets since 1860.

The first was driven by industrial developments, such as the introduction of electrical power and the expansion of railroads. That stage lasted from 1877 to 1929.

The second bull market was driven by consumer products. It began in 1932 and ended in 1968, Worseck said. It featured advances in automobiles, and the development of fast food, television, jet airplanes and the interstate highway system.

The technology bull market began in 1974 and continues today, Worseck said.

Stocks will experience some periodic downturns. But for the long haul, the market looks good, the financial analysts said.