This month again saw the resurgence of the credit crisis with more banks being taken over or 'nationalised'. Investment banks converted to commercial banks and the Irish Government stepping in to protect depositers from all walks of life. The US Troubled Asset Rescue Program failed to be passed straight through Congress and this added further concerns in the market. The month saw all major markets produce double digit negative returns.Inflation across the globe is anticipated to fall as food and commodity prices retrench. Indeed the recent drop in Chinese inflation allowed the government to protect the country's growth rate with a cut in interest rates, the first cut in six years. Investors are looking for signs of capitulation to indicate that wehave truly reached the bottom of the cycle, consumer sentiment certainly feels as though this is upon us.To reach for some comfort we need only look to the recent deals undertaken in the market with $5bn invested in Goldman Sachs by Warren Buffet and further investment in Morgan Stanley by Mitsubishi there is an implication that the financial sector may now be offering true value.
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