The prices of Big Pharma stocks are trading at about 15.5 times earnings, down from 21 in 2001. After only modest gains in 2006, the sector might be poised for a turnaround.
Since the Internet party ended painfully in 2000, technology stocks have lagged behind the market. But the coming year also means new products that could help reignite profits and investor enthusiasm.
The dollar tanked as 2006 drew to a close. Since mid-October, the dollar has fallen 6 percent against the euro. But the dollar has started to strengthen of late. A surprise Fed rate hike would help even more.
Although oil rebounded to finish 2006 where it began, the energy-heavy Goldman Sachs Commodity Index was down 15 percent after four straight years of huge gains.
You might think the recent uptick in home sales would be a sign that the housing market is on its way to recovery. But according to economists like Edward Leamer, "you'd be dead wrong."
When a bond manager tells you things are boring, you know they're boring. And 2006 was a pretty boring year for fixed-income investments, especially U.S. government bonds.