Wednesday, December 21, 2005

2006 Could be a Good Year to Invest

It seems like we will have a pretty decent year in 2006 according to this article. They say that the GDP growth numbers will be slightly less next year. Also profits may be a bit down as well. Other then that it seems pretty rosy since the FED will probably finish tightening by spring. Here is what has them worrying though:

A sharp dropoff in housing activity and home prices may not be the expected scenario, but it is at the top of most forecasters' worry lists of what could go wrong in the economy in 2006. So is the price of oil. Its ups and downs could be either a positive or a negative for growth. Any sharp swing out of the range of $45 to $70 per barrel would affect growth and overall inflation.

Throw in concerns about a possible plunge in the dollar, shrinking foreign capital inflows, and new acts of domestic terrorism, and you have enough in the mix to make any investor queasy.

No comments: