Best Buy, Inc. (NYSE: BBY), which saw modest sales gains in the holiday shopping month of December, is set to dominate the consumer electronics sector in 2008. Circuit City Stores, Inc. (NYSE: CC) is flailing its arms in surrender and competitors like Wal-Mart Stores, Inc. (NYSE: WMT) and Costco Wholesale (NASDAQ: COST) just cannot match the consumer experience for gadgets and gizmos that Best Buy offers.

Although Best Buy has a commanding lead in the consumer electronics marketplace in my opinion, the company's stock has been classified as one of the "worst stocks" to own in 2008 by The Motley Fool. Technically, the analysis is something I agree with. Indeed, there are many good things going for Best Buy going into 2008, but at the same time, consumer spending may decline as energy and food prices continue to be high. Consumers may very well curb their discretionary spending on flat-panel televisions, iPods and laptop PCs.

However, I don't agree with the statement that competitors are becoming better in the consumer electronics space. Wal-Mart has really made a push towards displaying consumer electronics much like Best Buy does. Despite a helpful customer service experience, breadth of selection and pleasing overall environment, it doesn't come close to Best Buy's customer experience (my two cents).

How about the prices? Best Buy is right there along with Wal-Mart, for example. From what I have seen, Wal-Mart's electronics products pricing is not any lower than comparable products at Best Buy. Wal-Mart also has no incentive program like Best Buy's ultra-successful Rewards Zone loyalty program. Considering all that, where would you shop for that next 50-inch plasma TV?

Goldman Sachs indicated yesterday that a "mild" recession may be coming to the U.S. in the middle of 2008. The recession will cause a consumer spending slowdown that will drive more customer traffic to low-price stalwarts like Wal-Mart Stores, Inc. (NYSE: WMT) and Costco Wholesale (NASDAQ: COST).

Goldman Sachs analyst Adrianne Shapira noted that a "second-half margin recovery could be at risk if retailers do not plan prudently enough." So the question is this: will consumers flock to the safe haven of low prices as a defense against higher inflation and a recession? Of course they will. As reported this morning, 2007's inflation rate was the highest in 17 years.

Shapira went on to say that sales and margins at department stores will be the hardest hit, with EPS declines to the tune of 23% in some cases. Should this cause you to dump shares of JC Penney Co. (NYSE: JCP), Kohl's Corp. (NYSE: KSS) and Dillards, Inc. (NYSE: DDS)? For long-termers, no. But be prepared for a bumpy ride as consumers flock to the cheapest of the cheap retailers.

Recession, smecession. While media worry-warts keep pondering when this 2008 U.S. recession will begin, some of those with impeccable market timing may be looking at picking up a few sin stocks for their portfolios before all this doom and gloom hits.

Fact is that recessions are an integral part of any capitalist society, and they can be beneficial to those market watchers who go against the grain when everyone else isn't looking. 30 years ago, some were wondering if capitalism could survive. Fast-forward to 2008: that's affirmative.

What can you do to survive a coming recession this year? Instead of taking all your money from stocks and stuffing it under the couch, how about picking up sin stocks? These are stocks that involve companies that make and market vices like tobacco and alcohol.

Because -- of course -- widespread talks of a recession can prompt widespread depression. That, in turn, can cause abnormal amounts of the population to being puffing and drinking their portfolio and gas price worries away. Some example are Altria Group, Inc. (NYSE: MO), Anheuser-Busch Companies, Inc. (NYSE: BUD) and even the Ladenburg-Thalmann Gaming and Casino Fund (NASDAQ: GACFX).