Imagine a large python just finishing a cow for lunch, it may not eat for another six months to a year.  Keep that in mind as I layout 2008.  The gluttonous developed economies are going to pause and digest their recent meal and as they do, the starving economies will grab that what the gluttons are not consuming at the moment.  At some point in the future when the gluttons want to consume again they will find those that have done without as they consumed will not give up the resources as easily as before and the gluttons will be force to make a decision, fight to feast or conserve and share.

While the United States digest its meal and pays down or off its tab also known as a recession developed Europe will slow in sympathy.  As these two large consumers of global resources slow, other wanna be consumers will fill the void.  Talk about pent up demand, most of the world would love half of the US consumer indulgences.

The developed economies will slow during the first half and as they do the emerging economies will fill the vacuum.  When the developed economies are finished digesting and resting look for growth of inflation and tensions.  Production capacity of food, energy, water and other natural resources will be the constraint at that point.

The US may or may not technically go into a recession but the fact of the matter is will have no impact on investment performance.  You want to invest for growth in the emerging world, both domestically and internationally for maximum investment performance in 2008.