The consumer has driven the US economy for the past 25 years. Now I believe we are entering a period where the consumer will start to save more. Part of this due to high debt. But the baby boomers will now start switching significantly into savings mode. This will cause a drag on company earnings and growth for many years. I am still unsure how this will impact the emerging markets. Obviously the direction of the US market has an impact globally, but the emerging markets are also becoming more self sufficient. Will we start to see the emerging markets go in a different direction than the US and the rest of the western world?
