U.S. stock markets have not fared well in just the first dozen days of 2008, as indices are being dragged down by worries about the continuing subprime loan meltdown and the after-effects that a tightening in capital lending could have on the economy. According to The New York Times, Friday was just the worst of a bad stretch across the boards:

• The Dow Jones Industrial Average fell 246 points, or 1.9%, and is down 5% for the year.
• The S&P 500 dropped 19.31 points, or 1.3%, and is down 4.6% for the year.
• The NASDAQ Composite Index slid 48.58 points, or 1.95%; and has lost 8% of its total value in the last two weeks.

With companies like Merrill Lynch writing down billions of additional dollars in bad loans linked to the subprime crisis, investors are starting to worry that businesses will find it increasingly difficult or expensive to borrow money to fund their growth. An economic slowdown could lead to higher unemployment and lower consumer confidence. Thus technology companies which rely on people ready to drop hundreds or thousands of dollars on the latest flat panel TV or electronic gadgets will suffer. As will the retailers who depend on the sales of consumer goods.

Of course, the continued high cost of fuel remains a brake on the economy. And if there's one thing that financial markets abhor, it is uncertainty. With the Presidential election eleven months off and a wide variety of candidates bandying about different economic proposals, it becomes difficult for investors to plan for or around what the future may hold. In short, hang on. As one analyst for Standard & Poor's wrote in a research note that was quoted in the Times, "The best investment may be in aspirins and a neck brace."