(FORTUNE Magazine) – LOOKING AHEAD/ Cover Story Executive Guilt: Who' s Taking Care of the Children? 30 Worries about kids raised by nannies or day care centers are being aired from corporate boardrooms to Congress. by Fern Schumer Chapman THE ECONOMY Fortune Forecast: Where the Dollar Is Headed -- With Luck 39 by Vivian Brownstein What Could Foul Up a Forecast 40 MANAGING Boone Speaks 42 In his candid, soon- to- be- published autobiography, T. Boone Pickens Jr. tells what' s wrong with corporate management -- and all about going after Big Oil. SELLING How U. S. Arms Dealers Are Making a Killing 58 Though big defense contractors' overseas sales are slumping, entrepreneurs who traffic in machine guns and mortars are flourishing. by Ann Reilly Dowd The Incredible Shrinking Business 68 CORPORATE PERFORMANCE Polaroid Flashes Back 72 The picture- in- a- minute pioneer has revived with a hot product and some niche marketing. by Brian Dumaine Synergy Works at American Express 79 At most companies two plus two equals four. But this firm shoots for five. by Monci Jo Williams Companies to Watch 82 MONEY & MARKETS Britain' s Own Boesky Case 85 The Guinness affair is no small beer. The scandal is shaking London' s banks, and embarrassing Maggie Thatcher. by Richard I. Kirkland Jr. PROFILE The Man Who Would Be Boss at BankAmerica 88 First Interstate' s Joe Pinola spent 23 years at the B of A and wants to return in glory. by Robert E. Norton People to Watch 94 THE WORLD Israel' s Right Turn Is Working 98 After a decade of hyperinflation, the country is dosing on Reaganomics. by Louis S. Richman The Editor' s Desk 4 News/ Trends 8 New clout for the oil cartel, Ted Turner pulls back from the brink, home- computer software companies are cashing in, bad deal for Big Steel, and more. Follow- Up 14 Tisch takes the job at CBS, Helms gets a new forum, and more. Letters to Fortune 17 Keeping Up 27 by Daniel Seligman Personal Investing: 105 Stocks That Still Look Good Some of the best bargains are small, out- of- favor company shares. by John J. Curran Portfolio Talk: Fund manager William Hayes. The Investment Challenge Update 110 Other Voices 113 The fantasy of life without risk. by Victor M. Earle III On Your Own Time 119 Sports schools go high tech. by Marilyn Wellemeyer Books & Ideas 123 The cola warrior. by Irwin Ross Office Hours 127 The obsessive manager. by Walter Kiechel III