Five Best Stocks for '07

But I don't think you want to own just any old blue chip in 2007, either. There is a significant chance that growth, especially global growth from China (as the country continues its runaway growth in the run-up to the Beijing Olympics in 2008) and India (as the country's rapid growth in its service and information-technology sectors continues to spill over into manufacturing), will be at the high end of projections in the most likely scenario. In that case, I think investors want more exposure to global growth trends than what is provided by the average blue chip.

Where do you look for this above-average growth potential? Among blue chips with exposure to the long-term growth trends in the global economy. Trends such as the rapid expansion of the middle class in Asia's economies or the aging of the global population or the increasing integration of the global economy itself.

So what five stocks would I pick from this list right now to own in the core of my portfolio for a very uncertain 2007?

Three that I already own in my 12- to 18-month portfolio: American International Group(AIG Quote) for its competitive edge in meeting the fast-growing demand for financial products, such as life insurance, among the middle classes of Asia; Amgen(AMGN Quote) for its competitive edge in developing new drugs for an aging population that demands to live not just longer, but also healthier lives; and PepsiCo(PEP Quote) for its competitive edge in bringing the great American combination of salty snacks and flavored bubbling (or still) water to the rest of the globe.