Earnings Forecast Model: This model combines numerous fundamental variables related to earnings change with variables that capture investor enthusiasm for companies. Together, these data are used to predict earnings changes over the following 12 months. The FTSE World index fell by 11.2%. October was one of the worst months on record for world stock markets. Policymakers in the US, Europe and the UK put the finishing touches to rescue packages for their ailing banks.However, investor concern shifted to impending recessions. In addition, several emerging market economies revealed the troubling impact of the financial crisis on their economies. Western markets performed less badly than Asian and emerging markets. Investors abandoned the riskiest assets and sought relatively safer havens like Switzerland. The best performing markets for UK investors were Japan and the US, as the dollar and yen made strong gains against European currencies.