Stocks Will Keep Rollin' in '07

Just about every Wall Street strategist is bullish on stocks for 2007. But there's no consensus on which sectors will provide the best returns amid uncertainties about the economy, the Federal Reserve and corporate profits -- not to mention geopolitics.

For example, PNC Advisors' Jeffrey Kleintop likes tech and health care, while Citigroup's Tobias Levkovich prefers tech and consumer discretionary stocks. Prudential Equity Group's Ed Keon would still bet on financials, while T. Rowe Price's Larry Puglia would choose biotech and acquisitive mega-caps. (See the table below for details.)

The dichotomy of opinion suggests strategists and prognosticators are confronting dueling fears: If investors don't take risk, they'll miss out on the best returns.

But at the same time, the consequences of a quick reversal in the liquidity landscape or market sentiment could be dire. The markets suffered such a reversal in April and May, when investors retreated from risky investments after Japan pulled the plug on its accommodative quantitative easing policy. ...