Five Fresh Investment Ideas to Make You Money in 2008

The U.S. subprime-mortgage crisis sent shockwaves thoroughout world markets.

It certainly took the luster off financial stocks, pushing that sector down about 21 percent in 2007.

It also caused extreme volatility with the CBOE Volatility Index up nearly 20 percent during the same period.  

But even with this turmoil, there were plenty of places to make money in 2007. Crude oil prices posted their biggest annual gain in a decade, and gold prices made their biggest advance since 1979.

But what about 2008? What fresh ideas will make investors money in the coming year? CNBC asked some experts to weigh in with their thoughts.

Municipal Bonds Get Their Day in The Sun

Municipal bonds are an overlooked investment opportunity, according to Mike Holland, of Holland & Co.

There’s a good reason that investors like Warren Buffett are looking at municipal bonds, he said. Holland explained that many of these investments don’t really need to be insured, but they are.

“You don’t have to worry if they go bump in the night,” Holland said.

“People are worried about lower-quality fixed income,” he said. “If you look at the municipal bond market, which most people don’t, it’s yielding the same thing (as two-year Treasury notes) and you don’t pay taxes (on the investment gains).”

Low-End Retailers and Rent-To-Own Companies

Greg Estes, a portfolio manager at Intrepid Capital Funds, expects markets to ride out another volatile year in 2008.

His advice for investors: "Let the volatility work for you, and just wait, wait, for the right pitch."

At the moment, he likes low-end retailers and rent-to-own companies. His picks include Rent-A-Center and Aaron Rents as well as Family Dollar.

Rent A Center and Aaron Rents are currently trading at "seven-to-eight-times free cash flow," Estes said. Meanwhile, Family Dollar has a "very clean" balance sheet, he said.

CONTINUED : Currencies & Oil in '08

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