Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.
First Trust Nasdaq Technology (NASDAQ: QTEC) is the top speculative idea for 2007 from Daniel Frishberg, BizRadio host and editor of TheMoneyMan.com.
He explains, "If all you had done over the past fifty years was buy stocks on the midterm election and sell on the presidential election, you'd be worth twice what you are now! Now we all get another chance.
"Seven years ago, stock prices were just about where they are now, but many companies were half the size and making half the money they make today. Seven years ago, stocks were expensive, and bonds were cheap. Today the tables have turned and we're set to profit.
"Some commentators are suggesting that the Wall Street phenomenon known as 'window dressing' may be a factor in this latest stock price surge. However, we think the rally is too broad to be just 'window dressing.' It is better to look at the rush of foreign money due to the falling dollar, the improving economy, and the end of interest rate hikes.
"In a late-stage rally, breadth narrows and there are only a few sectors or stocks leading the market. We are seeing just the opposite in this market, with a long list of strong sectors. The First Trust Nasdaq Technology shares are just now beginning a new strong leg up.
"Investors are discounting the very strong hardware and software upgrade cycle that will be stimulated by the new Vista and Longhorn software, by buying stocks like Microsoft Corporation and Cisco Systems, Inc., yet the vendors, partners, and developers who surround them will benefit for years, and this windfall is not yet 'in the market."
To see Daniel's top conservative investment for 2007, click here.
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