As I mentioned in another thread, I've been leery about global equities this year given that the Fed (and the central banks of many other industrialized countries) is in the midst of a tightening period. As GG mentioned, combined with the housing bubble ending (if not bursting), I don't think we've seen the worst of the equity slide. I moved a significant chunk of my portfolio into a global bond fund, which can also take advantage of a falling dollar. I'll sit on the equity sidelines until the end of the year at least. I don't know why, but it always seems the worst equity declines happen in the fall.
good luck.