The old adage "When the United States sneezes the world catches a cold" is proving to be true once again, as foreign markets have suffered from much worse declines than the United States this year. We believe that the policy actions of the Treasury and Federal Reserve will begin to cure the financial crisis in the United States. However, we are not so optimistic on the measures being taken outside of this country to treat the symptoms of the crisis, much less provide the cure. The economists of Europe lack the tools and resources to address the crisis effectively, and Asian economies are suffering from slowing export growth driving those economies deeper into recession. We continue to recommend underweighting foreign developed and emerging markets.

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