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.

"Although the nanotech sector in general is more speculative, a relatively more conservative pick within this space is PowerShares Lux Nanotech Portfolio (ASE: PXN), a favorite of mine for 2008," says nanotech and science guru Josh Wolfe, editor of the Forbes Wolfe Emerging Tech Report.

"With a significant amount of hedge fund assets in companies with market caps below $5 billion, the past quarter's liquidity crunch has hurt small-cap companies. The PowerShares Lux Nanotech Portfolio has seen significant decline with its small-cap constituents.

"But it also has large-cap multinational companies with significant overseas business. A year ago I liked it because it was a representative diversified index of companies that derived value from incorporating nanotech into their product lines.

Today, it's on sale today and if you want exposure to this long-term secular trend of advanced materials and nanotech and you're willing to be a long-term holder, I'd make it a piece of a broader portfolio. (Full disclosure: I'm a shareholder in Lux Research, which partnered with Powershares to form the index)."