fueled by low interest rates, mergers and solid corporate profits, Wall Street finally returned to a record-setting performance in 2006 after seven years

As long as gasoline prices don't rise, housing prices don't drastically fall, inflation stays in check, the economy continues to grow slowly, and the Federal Reserve starts cutting interest rates; most analysts predict that the market will finish much higher in 2007, although they expect that the next few months may be choppy.

Dow closed the year at 12,463.15, 16.6 percent above where it began

Standard & Poor's 500 Index closed at 1,418.30 for a 13.6 percent annual gain

Nasdaq Composite Index closed at 2,415.29 for a 9.5 percent rise

The single most important event behind the stock market's rise in 2006 was that the Federal Reserve stopped raising interest rates

A record $3.5 trillion in mergers also churned the market in 2006

Corporations such as Exxon Mobil produced record-breaking profits

Softness in the housing market encouraged speculators to shift their money from real estate to Wall Street

Oil prices, which approached $80 a barrel during the summer, moderated to $61.05 yesterday, helping cool investors' fears of inflation

   Full article at signonsandiego.com

Many of the world's major stock markets out-performed Wall Street this year, especially after taking into account the declining value of the dollar, which chipped away the value of U.S. stocks to foreign investors

After taking into account the declining value of the dollar, the leading stock index in London rose 26 percent; Paris, 31 percent; Hong Kong, 33 percent; Frankfurt, 36 percent; Stockholm, 39 percent; Sao Paolo, 45 percent; Mexico City, 46 percent; and Spain, 48 percent