• Industrial,
• engineering and construction,
• diversified metal and mining, coal and
• education services

Following sectors did not perform well in 2007 and don't expect much out of them either. If you are look at long(2 to 5 years) horizon, the valuations are good.

• mortgage,
• home building,
• financial,
• cosumer discretionary

FOR 2008

Dollar is going down, as the national debt is going up and,  I don't see any retreat from this phenomenon. Export suppose to counter balance the trade deficit, but that will take another 5 or more years. As, all the big companies around the world are betting on developing world, you should be a part of that group to make money. Look into ADRs of BRIC (- Brazil, Russia, India and China) countries or ETFs or mutual funds that have exposure to these countries. If you like to invest only in US stocks, look into companies with good cash flow/foreign exposure and are diversified (e.g. GE, CMI, JEC etc)

• healthcare: WAT, AET, IVGN
• technology: HPQ, AKAM 
• bio-tech:DNA, STJ
• Alternative Energy: SPWR,
  
  Always look into our stock list for new ideas.