India, South Korea, Singapore and others have seen a surge in economic activity
Clouds on the horizon include a slowdown in the U.S. economy and the global credit crunch
Companies are realizing the benefits of restructuring, such as outsourcing to emerging economies
China is adjusting to U.S. slowdown by increasing its exports to Europe and other Asian countries
Factors such as consumer spending, value of US$ will continue to determine economy’s direction
With the U.S. on the edge of recession, not all economists are pessimistic
Weakening demand for resources has important ramification for resource-laden equity markets
But risk of domestic recession low
Asset allocation switches to cash
Investment managers divided on prospects for energy and materials sectors