New Year, Same Problem

A weakening dollar and record oil prices. No end to the housing slump in sight. Additional writedowns due to the subprime mortgage crisis. Concerns over higher inflation and slowing economic growth. The growing probability of a recession in the U.S.

Sound familiar? These are all issues that plagued markets during 2007, and while a new year will bring new resolutions for traders, it appears they will continue to wrestle with these same problems in 2008.

The major averages did finish 2007 in positive territory, but extreme volatility caused dramatic shifts during the later months, and indices finished well off their highs for the year. ...