After strong start, markets turn volatile at quarter-end.
After a strong finish to 2006, markets turned volatile toward the end of the first quarter. A series of gloomy news stories from the housing sector, especially in the subprime-mortgage segment, combined with other signs of a slowdown in the U.S. economy took their toll on market sentiment. Overall, the Morningstar US Market Index gained 1.4% in the first quarter, well off the highs scaled earlier in the year.
In our quarter-end review, Morningstar Indexes research analyst Arijit Dutta provides insight into the market's performance. A recap of some of the key observations:
Sanjay Arya is director of Morningstar Indexes.