We may not have a crystal ball to peer into the future, but we do have proprietary statistical models using key financial metrics that can give us a good idea of what to expect over the next 12 months. And looking at these models, we have selected the following seven investments we expect to be among the best performers a year from now.

You'll notice that this isn't a list of just seven stocks or seven funds; for this list we combed every investment vehicle we analyze to give you the best edge on what we see happening in the year ahead. You won't be able to do that by just sticking with one type of vehicle. In 2007, you'll need every type of arrow for your quiver.

1. We don't see any end in sight for increased defense spending, so we believe PowerShares Aerospace & Defense Portfolio ( PPA) is a strong play.

The A-rated exchange-traded fund returned 20% in 2006. It is 50% invested in aerospace/defense, 13% in media, 11% manufacturing, 8% electronics, 5% computers and 4% metal fabricate/hardware. The largest holdings are Boeing ( BA), United Tech ( UTX), Lockheed Martin ( LMT) and Honeywell ( HON).

These stocks are set to fly again this year.

Even if defense spending doesn't continue to grow, Boeing, for one, will continue to grow as Airbus continues to struggle with production and delivery problems.

2. Calling on the telephone will never go out of style, at least not within the next 12 months. Because of this, we chose Vanguard Telecommunications Services ( VOX).

This A-plus rated ETF returned 36.7% in 2006, with 100% invested in U.S. stocks. The holdings were divided by 97% telecommunications, 2% Internet and under a percent of software. Top holdings include AT&T ( T), Verizon ( VZ), Sprint Nextel ( S) and Alltel ( AT).

3. Because communications growth has been much stronger outside the U.S. for the past several years, we're taking a close look at GAMCO Global Telecom ( GTCAX).

This A-plus rated fund is well diversified globally: 38% U.S. holdings, 30.5% European, 6.5% Asian Pacific (excluding Japan), 8.6% Latin America, 12.1% Canadian and 4.2% Japanese. Telecom worldwide offers great growth opportunities, especially in wireless communications, where the fund has 25.3% of its holdings. The fund also has cable, satellite and entertainment stocks.

For those interested in picking their own stocks, check these out: AT&T ( T), Atlantic Tele-Network ( ATNI), Golden Telecom ( GLDN), Telekomunik Indonesia ( TLK) and CT Communications ( CTCI).

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