As the US economy wobbles, it's not surprising that it has affected the world's economy, simply because the US is the biggest global consumer. With the US not in the buying mood, foreign economies depending on sales to the US are also faltering. Adding fire to the fuel, the September 11, attacks on the US amount to a strike on the global economy. Oil prices are up which is going to clearly lead to currency swings. The global financial system is set to suffer, with all its spin-off ramifications for the way companies do business.

The cause of the slowdown by now is very familiar. The tech-savvy NASDAQ crash exploded once and for all the myth that new technologies were immune to the business cycle. While the US eliminates the over-capacity built up by companies' massive over-investment in technology, business spending has all but dried up. That means little or no US demand for the high-tech hardware that Asia excels in producing. However, segments like software engineering, database production, medical and scientific equipment and biotechnology are having solid growth prospects because of their importance.

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