Following on from the historic September, October was equally eventful marked by large market swings, negative investor sentiment, global co-ordinated monetary policy action and unprecedented and large scale government bailout plans for banks. Stock markets globally had a rocky month, tumbling lower on the back of increased investor panic and recession worries.From a portfolio perspective, rationalising the market moves by fundamentals became virtually impossible in a market led by emotion. As the month wore on and as more companies reported slowdowns in earnings, worries about global recession, its depth and duration, grew. Equities were not the only asset class badly affected in October as commodity prices continued to fall on the back of fears of a global slowdown while corporate bonds priced in high levels of expected default rates.Over the course of such a difficult month we looked to take advantage of the wild market swings, buying during dips and changing our stance from defensive to one of cautiously optimistic. Refraining from short term emotional decisions, we have looked to align our positions with an eye to long term perspectives.Yields on corporate bonds began to look more attractive as markets priced in extremely high default levels. Late October we increased our exposure in the asset class through the purchase of two top quality, actively managed portfolios in that space, Invesco Perpetual Corporate Bond and M&G Optimal Income.Although in the short term we are cautious with markets being led by sentiment, over the medium term we are more optimistic as rescue packages and interest cuts begin to ease the credit markets. The worst appears to be over at this point and the bear market has led to attractive valuations and buying opportunities in several asset classes. Although cautiously optimistic, we are buoyed by the attitude of central banks and policy makers, which appear to have a willingness to do what it takes.