We wrap up a volatile year.
To say that 2007 was a tumultuous year would be an understatement. While the first half of the year witnessed a continuation of the trends seen 2007, markets were thrown in a tizzy by midyear because of mounting subprime mortgage defaults. Credit-sensitive sectors suffered heavy losses. Still, stocks of large companies held up, as did stocks that were regarded as relatively immune from the credit meltdown. Overall, the Morningstar US Market Index finished the year with a 5.9% gain.
In our special year-end review, Research Analyst Arijit Dutta provides insight into the market's performance in 2007.
Sanjay Arya is director of Morningstar Indexes.