Initially US stocks were reluctant to correct despite knowing that fallout from subprime mess and slowing economy will hit hard companies and their bottomlines, they are now correcting on every trading session. Each and every indicator of economic health is showing massive detoriation, leading the charge is rising home foreclosures, rising credit card defaults, slowing auto loan demand with rise in loan defaults, falling home prices, record high food and energy prices, weakning dollar. All this has combined now to cause US stocks to correct sharply from their recent heighs. Market analyst are now arguing that investors/traders will now flee to safe heavens like US treasuries and Municipal bonds. But why they should when they can earn high and relatively safe returns on their investments with double benefit of getting additional return on currency they are buying into. These seasonal investors will now start buying into equity of fast growing economies like India, China, Russia, South Korea, Taiwan, Brasil. Also aiding their returns is high yield currency and moderate dependance on exports to United States Of America. Having said that, 2008 will prove to be a challenging year for investors/traders in equities.