Holiday Portfolio: Auld Lang Syne

That volatility will likely continue, but exposure to the health care sector through Big Pharma is an important part of a balanced, core portfolio. Pfizer remains a leader in research, with a focus on next-generation pharmaceutical applications.

The reader's choice, General Electric (GE Quote), comes in fifth place. While the stock struggled a bit out of the gate in 2006, this could be a big year for the company's power and heavy industrial businesses as well as the health care segment. Absent an economic downturn, which would likely affect GE's diverse business mix, look for better things in the year ahead.

The Point of No Return

The portfolio's laggard has been Chesapeake Energy (CHK Quote), which is ironic, given the relative strength of the energy theme during most of the year. Volatile natural gas prices and the company's aggressive acquisition posture have certainly contributed to the sluggishness. Plus, a recent equity offering that, as expected, did not trade well has challenged a company trying to rebuild investors' confidence.

While those variables may have temporarily stalled this stock, CEO Aubrey McClendon has skillfully positioned his company for the future. His efforts should pay off beginning in 2007 as the company begins to harvest the assets from recent acquisitions. It will be a critical year for Chesapeake if it hopes to retain its position among America's energy-producing elite.

Happy New Year

I am putting the final touches on the 2007 Holiday Portfolio, which will be unveiled on the Martin Luther King holiday.

If you have suggestions for the 2007 edition, shoot me an email. This year, I'll pick what I consider to be the most compelling argument for a stock in the portfolio from one reader. So don't give me just a name; give me your reasons, too.

Again, your comments, criticisms, compliments and interaction made 2006 the best year yet for RealMoney and TheStreet.com. May 2007 bring more of the same, and may all of your dreams turn into reality in the coming year.

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting