decoupling was simply a story to be told by those selling false hope. When the U.S. sneezes, the rest of the world does indeed catch cold as we are now seeing.

The Olympic Games proved that we are all interconnected in ways not yet fully understood. To me, the most compelling storyline of the Olympics came in the gymnastics competition.

Here we saw so many plots and subplots unfold night after night. For the United States, we had a gymnast from Des Moines, Iowa, coached by a U.S. immigrant born and raised in China. We also had a U.S. competitor born in Moscow to parents of USSR Olympic participants and medalists.

If that doesn't tell you we are all connected, I am not sure what will! As an investor, we need to take heed.

The Golden Economics of an Interconnected World

Looking forward, we are seeing the benefits of an interconnected world. The rest of the world is now experiencing what we saw in the United States earlier in the year. That is to say growth is slowing around the globe (see also, "The Safest Way to Invest Overseas").

That means, interest rates globally can be expected to drop, just at a time when the U.S. may be raising rates to fight inflation. Such a state has helped strengthen the dollar against other foreign currencies.

That strong dollar pushes oil and commodity prices lower while pushing stock prices higher. That is the trend that is now firmly in place, and I expect the market to trade accordingly for the next few months.

Congratulations, China, on a job well done. We enjoyed the show!

This article was written by Jamie Dlugosch, contributor to InvestorPlace.com. For more actionable insights like this, go to: www.InvestorPlace.com.