The US is turning into Europe. Think high taxes, chronic high unemployment, more government involvement in everything, less innovation, and much lower growth, in exchange for a social safety net and better coffee. That is the message the markets told us by retreating to the 6,000 handle in March, levels not seen since 1996, and down 54% from the 2007 peak. Equity prices will shrink to multiples, in line with permanently lower long term growth rates of maybe 1%-2%, a shadow of the 5% rate seen for much of this decade. Hint: that’s a lot lower than here. Perhaps this is what mature economies are supposed to look like. If someone is holding a gun to your head and you must buy American stocks, only select names that get the bulk of their earnings from overseas. Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC), Oracle, (NYSE:ORCL), Cisco (NASDAQ:CSCO) all get 60%-70% of their profits from overseas, where up to 90% of the real economic growth will come from for the next decade. Commodity, agricultural companies, and their ETF’s also fit this picture. As for me, I think I’ll move to Tahiti and live off of coconuts and freshly speared fish, wearing only a loin cloth. Anything is better than becoming French.