Forecasts for 2007 from Chuck

"I expect a correction to start soon, lasting about three to four months with the market having an 8 to 10% decline. A narrow rally favoring large cap stocks will follow and last about four to five months, carrying the major averages to new highs. Then a bear market will arrive, lasting about nine months and seeing a 20% decline.

That puts the start of the bear market near the end of 2007. If so, 2007 shouldn't be a bad year – but it won't have the kind of big gains we've seen recently."

And on Housing:
"It is tough to predict the impact of rising long-term interest rates on the housing market. The economy has changed so much since the last rising rate environment in the 1960s. The banking and lending business has also evolved enormously. While you would imagine that higher rates could hurt housing, the appeal of housing as a hard asset could be increasingly attractive to a lot of people. If we enter an era of expanding households, that could overwhelm the negative impact of rising rates. On the other hand, baby boomers are downsizing. Housing is definitely a sector where any forecast is difficult. "

Entire forecast by Ken Tower HERE

A Dash of Insight looks at Long-term Sentiment: 2001 to Date