Good Riddance 2007: A Sloppy Year

by: David Fry

The big boys have left a few sentries behind to monitor and protect positions on this last trading day of the year. It seems they didn’t leave enough or give them much ammo, nevertheless the year ended with performance and bonuses still relatively intact.

Many would argue: good riddance 2007. I know I would. It would appear major indexes like the S&P 500 gained around 3.3% not included paltry dividends. You’d have been better off in cash. Tech sectors led with the NASDAQ 100 up approximately 18.6% but small cap sectors like the Russell 2000 dropped roughly 2.6%. Emerging Markets were the hottest indexes along with commodity sectors and related ETFs. Good stock pickers excelled as usual but their universe was led by a narrow bunch. In the meantime, fixed income sectors were, well, fixed income.

There will be much to reflect upon over the next few days if Mr. Market gives you any time. January can often bring dramatic surprises including spectacular reversals of previous trends.

Breadth was narrow Monday [except for the NASDAQ] and volume was [as of this early data capture] holiday light.

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