Group Think

The SEC published a prototype “summary prospectus” for mutual funds, and has asked for public comment from investors. The Commission voted unanimously on November 15 to propose rule amendments that would enable investors to view a concise, plain English summary of key facts about a mutual fund. The prospectus is at www.sec.gov/investor/enhanceddisclosure.htm. The Commission is accepting comments until February 28, 2008.

The Securities Industry and Financial Markets Association’s Economic Advisory Roundtable forecasts that the pace of U.S. economic growth will slow in the first half of 2008, but accelerate in the second half of the year. The median forecast in the survey anticipates GDP will grow 2.1% in 2008 as the economy “works through the housing sector contraction and the effect of credit market turbulence.” Most respondents do not expect housing prices to “hit bottom” and begin to recover nationally until 2009.