best 25 stocks 2008

On last month's 12th FORBES cruise for investors--aboard the majestic Crystal Serenity, which sailed from the Pacific to the Caribbean through the Panama Canal--guests got these 2008 stock picks from our expert panel.
Ken Fisher is the founder and CEO of Fisher Investments, which manages $46 billion across 20,000-plus private accounts. Fisher said: "Most see a global recession or slowdown in 2008. I don't, not with strong earnings yields relative to low Treasury yields around the world today. Before others figure out the good news, you'll want to be in on these economic turnaround stocks:--Flextronics International (nasdaq: FLEX - news - people ) (FLEX, $11.53) --Manpower (nyse: MAN - news - people ) (MAN, $57.18) --Allianz (nyse: AZ - news - people ) (AZ, $20.16) --Cascade (nyse: CAE - news - people ) (CAE, $46.80) --Union Pacific (nyse: UNP - news - people ) (UNP, $128.96).
Brian Wesbury is the chief economist for First Trust Advisors, which manages $36 billion for private and institutional accounts. Wesbury said: "Our model shows U.S. stocks to be 25% undervalued even when we use a higher 6% yield for the ten-year Treasury bond." (As this column went to press, the yield was 4.1%.) Wesbury thinks the U.S. and the global economy are in a long boom, fueled by tech-led productivity, easy money and tax competition. He likes chip manufacturers and aerospace parts suppliers:--Sigma Designs (nasdaq: SIGM - news - people ) (SIGM, $62.71) --Nvidia (NVDA, $33.28) --Precision Castparts (nyse: PCP - news - people ) (PCP, $138.39) --Parker Hannifin (nyse: PH - news - people ) (PH, $75.06) --Hasbro (nyse: HAS - news - people ) (HAS, $25.84).
Stephen Biggar is the global director of equity research for Standard & Poor's. He recommended any of the 149 five-star stocks within the 1,550 companies covered by Standard & Poor's. Pressed to name just five stocks, Biggar offered us this broad midcap mix:--Carlisle Companies (nyse: CSL - news - people ) (CSL (other-otc: CMXHF.PK - news - people ), $37.62) --CVS Caremark (CVS, $39.13) --Hologic (nasdaq: HOLX - news - people ) (HOLX, $65.08) --Manitowoc Company (nyse: MTW - news - people ) (MTW, $45.90) --Triumph Group (nyse: TGI - news - people ) (TGI, $75.55).
Charles Payne is CEO of Wall Street Strategies, a firm that develops stock selection services for professional traders and institutional investors. Payne is a frequent guest market analyst on Fox News and Fox Business News. He shared these picks:--Diana Shipping (DSX, $29.29) --MEMC Electronic Materials (nyse: WFR - news - people ) (WFR, $83.42) --Evergreen Solar (nasdaq: ESLR - news - people ) (ESLR, $15.02) --VimpelCom (VIP, $35.74) --Guess (GES, $40.10).
Vahan Janjigian is Vice President and Executive Director of the Forbes Investors Advisory Institute. He is the editor of the Forbes Growth Investor and the Special Situation Survey, investment newsletters that have produced five-year annualized returns of 15.3% and 26.6%, respectively, according to the independent Hulbert Financial Digest. Janjigian is also the host of MoneyMasters with Vahan Janjigian, an Internet video program available on Forbes.com and iTunes, and is the coauthor and editor of the Forbes Stock Market Course, as well. Although Janjigian is an economic and market bear, he likes these stocks:--Johnson & Johnson (nyse: JNJ - news - people ) (JNJ, $67.55) --DRS Technologies (nyse: DRS - news - people ) (DRS, $55.31) --Rock-Tenn Company, Class A shares (RKT, $24.50) --Trinity Industries (nyse: TRN - news - people ) (TRN, $26.07) --Avnet (nyse: AVT - news - people ) (AVT, $34.75).
And for You Bears
Disagree with the bullish forecasts given above? Think bad mortgages will torpedo the economy and stocks? Here are some down-market defensive strategies shared during our investor cruise by longtime FORBES columnist Gary Shilling:
--Short home builders. Whoa! Haven’t the home-builder stocks already fallen hard? Not far enough, says Shilling. Home builders trade at book value today but sold for half of book in 1991.
--Don’t just short home builders; short (or sell) mortgage lenders and mortgage insurers, too.
--Sell any residential real estate or land you don’t intend to keep for the long haul. Take small losses, sure to grow larger soon.
--Short or sell companies that make big-ticket consumer items— like cars.
--Short sub-AA-rated CDOs backed by subprime mortgages.
--Get rid of junk bonds.
--Sell or avoid most commercial real estate.
--Sell or short commodities, including oil. Why? The U.S. recession will damage the global economy and suppress demand for commodities. Shilling’s favorite short: copper.
--Short (or sell) emerging-market stocks.
--Short (or sell) emerging-market bonds.
--Sell U.S. stocks in general.
--Buy the U.S. dollar.