(MONEY Magazine) – Last issue, we predicted that the economy would soon show surprising strength and that the stock market would quickly reflect the rosy glow of the traditional honeymoon period for a new President. Sure enough, within a few weeks consumer confidence improved somewhat, the media began rhapsodizing about the ''Clinton recovery'' and the Dow was up 2.4%. We say: Enjoy it while you can. For the past three months, the Federal Reserve has been pumping money into the economy at an extraordinary 21% annual rate. But H. Erich Heinemann, chief economist at Ladenburg Thalmann, warns: ''The Fed cannot increase the money supply at this rate forever.'' And when the money stops, so will the bull market. Your smartest strategy now is to keep half your money in income investments and the rest in stocks with solid long-term growth prospects. Here are four New York Stock Exchange issues that analysts consider great bargains for conservative investors: -- Bank of New York (recently traded at $49 a share). Though bank stocks were hot last year, spurting an average of 33% by early December, they remain cheap. Among large banks, many analysts give high marks to Bank of New York, which has assets of $42.4 billion. The stock trades at a price only 9.3 times analysts' estimates of 1993 earnings and yields 3.1%. Over the past year, the bank has improved its loan portfolio by reducing its non-performing assets by 40%, notes analyst George M. Salem at Prudential Securities. He calls the company ''one of the star bank stocks of 1992.'' He figures the stock could rise another 27% to $62 by the end of '93, for a total return of 30%. -- Fluor ($42.25). Although engineering stocks dropped an average of 11% in the first 11 months of 1992, analysts now see a brilliant future for the group in light of the Clinton Administration's plans for heavy infrastructure and environmental spending. Fluor, the largest U.S. construction and engineering firm, with revenues of $7 billion, currently yields 1.1% and trades at 16.9 times '93 earnings. Still, that P/E seems reasonable given the company's likely 16% to 20% annual earnings growth over the next five years, says Stephen Leeb, editor of the newsletter Personal Finance in Alexandria, Va. Leeb thinks the stock could gain 30% to about $55 in the next 12 months. -- Bristol-Myers Squibb ($70.50). Pharmaceuticals were one of 1992's worst- battered stock groups, down 14.4% to early December. Yet analysts favor $12 billion Bristol-Myers. Though it's true that drug stocks may face some setbacks in the struggle to control health-care costs, Bristol-Myers has a promising mix of drugs in development, plus a broad line of consumer products, such as Bufferin, Drano and Windex. The stock yields 4.1% and earns the highest Value Line rating for financial strength. Geraldine Weiss, editor of the newsletter Investment Quality Trends in La Jolla, Calif., believes Bristol-Myers Squibb could rise 16% to $82 a share within 12 months, for a 20% total return. -- Alcoa ($72). Although raw materials stocks have rallied on investors' expectations of a stronger economy, aluminum stocks limped into early December off 3.2% for '92. One reason: The former Soviet republics are selling metal at cut-rate prices. But analysts say the sell-off will abate soon. Alcoa, the world's largest producer (estimated 1992 sales: $9.5 billion), is - the blue-chip play for investors who plan to hold it for two or three years. The stock yields 2.2%. ''The aluminum industry is just coming back to life,'' says Rao Chalasani, chief investment strategist at Kemper Securities. He expects the stock to move up 18% to $85 in the next 12 months, for a 20% total return.

BOX:

-- THE ECONOMY Growth could pick up in the first half of the year, with real gross domestic product expanding at a 3% annual rate or more.

-- STOCKS The market could still reach an all-time high early in '93, with the Dow topping 3500. But a drop to 3000 remains a danger later in the year.

-- BONDS Long-term bonds are risky because interest rates could start rising within three to six months. Stay with less volatile issues that have maturities of seven years or shorter.