2006 OUTLOOK.

The article discusses economic policy in the United States and the outlook for 2006. The interest rate hikes make by the Federal Reserve, higher oil prices, and the economic losses from three hurricanes can be blamed for the poor performance of stocks in 2005. Citigroup analyst Tobias Levkovich predicts a 1400 year-end target for the Standard & Poor's 500 index. Wells Capital Management analyst James Paulsen says interest rates are typical for post-recession markets. MKM Partners economist Michael Darda predicts more interest rate increases which will slow down corporate earnings growth.