2007 Predictions

I enjoy tracking investment predictions for the coming year to see which analysts have a clue and which don't. The Chicago Tribune on 12/17/2006 had an article in which they asked several analysts how to invest $10k for 2007. I'll leave the names out, but use their titles.

Chief Market Strategist for Stifel, Nicolaus and Co. in St. Louis: The market rally will continue, taking the DJIA to 13k in the first quarter before a 10% or more correction in late spring and summer. Invest $10k in Coventry Healthcare, Inc.

Chief Investment Strategist for Standard and Poor's Corp: Historically, the 3rd year of a presidency has produced an average gain of 18%. His choices are the Consumer Discretionary SPDR or Coach Inc. In Industrials, the Industrial Select SPDR or L3 Communications. In technology, the Technology Select SPDR or Western Digital Corp.

Founder, The No Load Investor: Stock valuations remain reasonable despite the recent run-up. Divide the $10k between T. Rowe Price New Era fund, a natural resources fund that is 'pseudo-commodity', and the Powershares FTSE RAFI US 1000 ETF.

President, Garzarelli Research, Inc: Invest $2500 each into Nasdaq 100 Trust, iShares MCSI Emerging Market, iShares Russell 2000 Index, and Merrill Lynch and Co.

Investment Director with Hinsdale Associates: We're playing a defensive game. Divide the money between bonds and the stocks of Anheuser Busch, Bristol-Meyers Squibb, and American States Water Co.

Managing Director for Investment Strategy, Raymond James and Associates: Invest it all in ETFs, esp water, aerospace/defense, financials, and technology. E.g. Powershares Water Resources, Powershares Aerospace and Defense, Vanguard Financials ETF, and Technology Select SPDR.

Chief Market Strategist, A. G. Edwards and Sons: The economy is already slowing, corporate earnings will slow, the overall market will be reasonable, Fed will lower interest rates in the spring. Stick with larger cap quality growth companies.

Director of small-cap stock research for Prudential Securities: Small caps may be overextended. Lean toward large cap growth, especially technology and healthcare.

Managing Director of Morningstar: Cards are lining up for large-cap growth. Put $10k into Primecap Odyssey Groth Fund