Outlook 2008

With $100 oil, energy looks good, of course, but our market strategists also like the health care, shipping, agricultural and chemical sectors.

Steve Liesman runs down his list of eight things to look out for in 2008. Questions for next year is whether there will be a recession, a housing bottom, and whether the government and the Fed will bailout subprime.

S&P Chief Investment Officer Sam Stovall says the Federal Reserve's easy money policy will help corporate earnings increase by more than 15 percent in the coming year after a disappointing finish in 2007.

Will 2008 be the year to buy financial stocks? Bob Pisani runs down his predictions for next year including whether ETFs will continue to grow, expected IPOs, and whether coal will make a comeback.

Just how badly the economy performs depends mostly on the depth and duration of the housing recession and the great unknowns of the credit crunch. The sooner the bottom, the sooner the bounce.

A price boom may have captured the spotlight in recent years, but investors need to be selective going forward as some markets have likely peaked. Energy and base metals may be tapped out but grains may have room to rally.

With 2008 likely to be another volatile year for the markets, many money managers say a well-diversified portfolio is more important than ever, but some experts have varying ideas about what's in store for the different asset classes.

Investors in US fixed income markets face a laundry list of uncertainties in 2008, which are likely to keep them on the defensive, analysts say. The best course of action may be to diversify.

Given all of the volatility in the market over the past several months, many experts are betting that making money in the first half of 2008 is going to be largely about savvy stock picking.  But if your stock picking prowess isn’t up to snuff, you may want to consider investing in exchange-trade funds instead.

Don't be surprised if Google replaces an old-line industrial in the blue-chip index, the greenback makes a hearty comeback and the planned Visa initial public offering finds a place in the record books.

Expect foreclosures, falling home prices, green homes and homebuilders to dominate the headlines in 2008.

A possible recession may benefit pharmaceutical stocks. More mergers are expected between big pharma and biotech companies. Meanwhile, new stents hitting the market could increase competition and cause stent prices to drop.

Look for more 3D movies, shifts in the way the music industry makes money and cell phones becoming a major media center in 2008. In addition, all eyes will be watching how the writer’s strike affects the entertainment industry.

Goldman Sachs stays hot, Citigroup stays together and JP Morgan Chase hits the acquisition trail. Meanwhile, look for the credit crunch and market volatility to drag on and M&A to scale down.

Look for big box retailers to go small, acquisitions by overseas buyers, a boom in accessories sales and a move away from chewable toys.

Cypress Semiconductor CEO T.J. Rodgers tells "Fast Money" production costs are falling and demand is rising. "I think capacity could double in two years, if we had enough silicon," says Rodgers.

Look for the return of the Dodge Challenger and Chevy Camaro, the debut of new SUV hybrid models and a spate of pint-sizes smart cars, but sales may not take off until the second half of the year when the economy is expected to improve.

Between the housing correction, economic uncertainty, the credit crisis and predicted softening in the commercial property markets, real estate has more than its share of risk. That's where the bargins come in.

From Apple to Microsoft to Google, look for a big and busy year of product launches. Jim Goldman has eight developments to look for in '08.

The opening event of the Beijing Games next August will be the most amazing spectacle in sports, as China pulls out all the stops for its global coming out party.

A mega merger or two may be in the cards, as pressure remains to consolidate, and any sign of a Democratic victory in the presidential election is likely to put a damper on stock prices.

Look for wheeling and dealing involving the the big industry players from Time Warner to Sony to NBC Universal. And don't be surprised if Sumner Redstone gets into a big fight with his daughter  over Viacom.