Gazing into our 2007 crystal ball, Small Business Times foresees slow economic growth in southeastern Wisconsin, as the economy is tempered by an icy housing market, a slumping American automotive industry and the costly war in Iraq.

Anecdotally, executives at many Milwaukee-area small and medium-sized businesses are telling SBT they are optimistic about their own companies, but a bit leery about the overall economy.

Economists are predicting U.S. gross domestic product increases of 2 to 3 percent for the year. The opportunities for growth will be there, but companies will need to earn them.

The impact of the cost of the war in Iraq cannot be overstated. A new report by a Nobel Prize-winning economist says the costs, including the dollars needed to care for the 16,000 American soldiers who have been wounded in Iraq so far, could top $2 trillion. To read the full report, visit http://www.project-syndicate.org/commentary/stiglitz67.

Regardless of the economic fundamentals, investors can expect 2007 to be a bullish year on Wall Street. Stocks are entering the third year of the U.S. presidency, which historically is the strongest of four-year market cycles. The stock market has closed higher in each of the 14 most recent pre-election years.

To gain an in-depth sneak preview of the year ahead, attend the 2007 Northern Trust Economic Trends Breakfast, to be presented by SBT on Friday, Jan. 19. The annual event will take place from 7:30 to 9:30 a.m. at The Pfister Hotel in downtown Milwaukee.

At the conference, insights about the year ahead will be provided by:

Milwaukee County Executive Scott Walker, who will discuss the key political issues of 2007.

Michael Knetter, dean of the University of Wisconsin-Madison School of Business, who will discuss the macroeconomic outlook.

Paul Shain, chief executive officer of Berbee Information Networks Corp., who will discuss the emerging trends in business technology and the impact of his company's acquisition by CDW Corp.

Michael Koss, chief executive officer of Koss Corp., who will discuss new strategies for developing markets in foreign countries.

Harry Stratton II, chairman, president and chief executive officer of Strattec Security Corp., who will discuss the future of the American automotive industry and how Wisconsin manufacturers can compete in the global marketplace.

Individual seating at the breakfast is available for $50. Corporate tables of 10 are available for $500. Seating is limited. For further information, contact Sarah Wilson at (414) 277-8181, ext. 129, or www.biztimes.com/cal/sbt-events/2007/1/19/economic-trends-2007.

The Northern Trust Economic Trends Breakfast will be accompanied by an in-depth economic analysis of the year ahead in the Jan. 19 print edition of SBT.