Other key issues to watch during 2006 include:

• A shift from housing- and consumer-driven growth to business-led growth. The housing sector is cooling, though Schlossberg said the "ingredients" for a housing bust aren't there yet.

• A more supportive global economy, which is relying less on exporting goods and more able to grow within.

• Inflation's re-emergence on the risk radar.

• Risk-taking tilting from investors to businesses.

• Tax policy stepping back into the spotlight, especially the capital gains, dividend and alternative minimum taxes.

• The Federal Reserve entering a new phase. Schlossberg said it might raise short-term interest rates two or three more times before the end of the year.

• Large-cap growth stocks, as well as international stocks, being among the more "attractive" options. Schlossberg urged caution when looking at "physical stocks" — particularly real estate, and real estate investment trusts (REITs).

Despite concerns about energy prices, Wells Capital — nationally and in Utah — remains optimistic.

"We think we're looking at pretty strong growth for the first half of the year," Schlossberg said. "The fundamentals — employment, incomes and the like — we think will support it."

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