a roadmap of risk in 2008

recession risk --38% of chance of recession in 2008 --Fed might not be in a great position to contend with a recession. Inflation is perking up. International Bubble --According to the Investment Company Institute, between the beginning of 2006 and October 2007, non-U.S. stock mutual funds showed a net inflow of nearly $273 billion. U.S. funds have showed a net outflow of $9.77 billion in that time. --0vervalued China and Indian market, five year $0% annualized return --high P/E: China 46.6, Indian 26.4 Agflation --droughts have caused a surge in prices of corn and wheat. Exacerbated by the demand of ethanol as a fuel. http://online.wsj.com/article/SB119845373794447709.html?mod=todays_us_money_and_investing