December 25, 2006
It has been quite a year. Surely the downs and the ups have been memorable. The ups fortunately outlasted the downs and the year seems to be closing in with the Dow Jones 30 up over 15%. The S&P 500 also did well as did almost every growth oriented mutual fund. There have been a few surprises as well, even if the year is not yet complete.
Probably the most notable has been the fact that only a month ago, the Democrats took over the majority in the House and Senate. This has had mixed results on the markets.
On the positive side, it allowed for several Stem Cell related biotechs to move, actually rocket, higher. On the down side, this party was not received as well by “Big Pharma”, and we have seen a rather precipitous contraction of prices within these stocks over the same time period.
Once we hear the closing bell of 2006, it is probably going to be recorded as a victory for the Fed at the expense of the consumer.
as exercising patience.