New Year Predictions (Financial)

The Financial Year Ahead (maybe?)

• There will be a (small) credit crunch in an Emerging Market Country at some point in 2007 - and spreads across the board will widen
  
• Despite good (upwards) housing data the MPC will leave UK Interest rates unchanged for the first 6 months of 2007
  
• As an economic slow-down affects the USA and then Europe, Stock marktes will trade flat to slightly upwards during the year, but with volatility through the year, and a great difference between sectors. (ie Large-Cap, steady will do well (eg GE, Microsoft) whilst small growthy will do badly)