The Standard and Poor’s 500 cash index (S&P) should finish its topping process by mid February and then I look for a contra seasonal down move into May.

On the Upside

According to Thomson Financial, 2006 was a record year for global merger and acquisition activity, hitting 3.77 trillion and topping the record set in 2000 of 3.44 trillion. This trend should continue into 2007. Our economy is still flush with cash and many high profile companies are yielding 5% free cash flow making them attractive takeover targets.

Read the Bull Bear Review (PDF) >>>

Posted by Michael Chapman at 8:45 PM PST