For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite, and more conservative investment idea for 2008 is Japan -- specifically, the iShares MSCI Japan ETF (ASE: EWJ)," says Mike Burnick, editor of Global Market Investor.

"Japan has been one of the most out-of-favor major industrial stock markets over the past two years, yet corporate profits are growing at a fast pace, thanks to a robust export market. Japan's proximity to China certainly helps in this regard, as Japan has become a key exporter to China, as well as other emerging Asian nations.

"From a valuation perspective, Japan appears to be the most undervalued major market in the world right now. Many blue-chip Japanese banks and industrial firms sell at book value or even less then book.

"Meanwhile, bonds typically yield more than stocks, to compensate investors for the lack of appreciation potential in bonds. However, in Japan today the normal stock/bond risk/reward relationship is turned upside-down.

"In fact, there's an unusual and extraordinary opportunity awaiting investors right now in the land of the rising sun. Right now, you can actually earn more in dividends on blue-chip Japanese stocks than you can on ultra-safe long-term Japanese government bonds.

"This is a rare and potentially very profitable occurrence for any stock market in the world, let alone an established, liquid market like Japan.

"It is a sign that Japanese shares are extremely overlooked right now, and trading at bargain-basement prices. Japanese shares are among the world's cheapest right now, and this undervalued market is sure to draw buying interest from global investors.

"The last time this 'yield inversion' (in favor of stock dividends over bond yields) occurred in Japan, the Nikkei 225 Index soared over 60% higher. I see little downside risk in EWJ at this point, and the upside potential in 2008 could be 30% gains or more.

"Bottom line: from a valuation perspective, Japan appears to be the most undervalued major market in the world right now. And perhaps the best and easiest way to play it is with the iShares MSCI Japan."