And That’s The Year That Was: 2007

January 5, 2008 |

Attached (linked) please find “And That’s The ‘Year’ That Was”…the Brounes & Associates market/economic commentary for the period just ended December 31, 2007.  A year that started with so much promise could not have ended soon enough for many investors.  Heading into a presidential campaign season, eternal optimists were calling for a continuation of the bullish sentiment.  Oil prices were falling, the housing sector was primed for a rebound, incumbents were touting the strong economy, and opponents began pointing out how they could do better.  Then came Novastar, Accredited, New Century and a number of no-name mortgage lenders whose challenges served as a precursor for far greater problems among the nation’s largest financial institution.  The mortgage fiasco hit just as geopolitical turmoil prompted a rise (rather surge) in energy prices and once again the dreaded “I” word was creeping back into the water cooler conversation.  All the promise of the first half of the year suddenly disappeared by mid-summer and investors were fortunate to squeak out gains despite a woeful fourth quarter (and no Santa Claus rally).  Bernanke and friends remained busy throughout the past few months as the Fed attempted to balance the fears of recession with newfound threats of inflation.  So what are those incumbent/opposition politicos saying (or promising) now?

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