Markets and exchange traded funds (ETFs) around the world are subject to the whims of global leaders. Let’s hope that a meeting of the G-8 will bring the necessary guidance for a wayward global economy.

The Group of Eight leaders weren’t able to come up with a consensus in fighting the global relapse, allowing each country to resolve their own economic woes, report Helene Fouquet and James G. Neuger Bloomberg. This meeting took place amid a renewed stock-market free fall based on concerns that the worldwide $2 trillion in spending was not enough to halt rising unemployment and increasing pessimism.

Options presented in the meeting include the Obama administration’s plan to consider a second stimulus package and Germany’s attention on reducing deficits.

The IMF upgraded the 2010 growth forecast, urging countries to stick with their stimulus plans, but slated it will be more “sluggish.” It is calculated that the debt of advanced economies will reach 114% of global GDP in 2014 as a result of recession-fighting measures and bailouts.

While the G-8 is rather undecided on an exit strategy for the global economy, an investor should not be. It is prudent to protect yourself on the downside and perhaps save a few dollars on Tums. We cover our strategy in more detail in our trend-following report. Don’t wait until the horse is out of the barn before you think about how you’re going to get things back on track.

Among the top priorities of the G-8 summit this week was climate change. Major industrial and emerging nations failed to agree on the specific reductions to greenhouse gases by 2050, writes Peter Baker for The New York Times. The G-8 and developing countries did agree to set a goal of allowing a maximum rise of 2 degrees Celsius (3.6 Fahrenheit) from preindustrial levels. G-8 countries also agreed to follow 2050 reduction goals but developing nations would not.

Max Chen contributed to this article.

Tags: Global ETFs, Trend Following