When to call the bottom

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The damage done to investor confidence is so immense that no single action can turn them round and even if banking collapses are averted then we are still staring global recession in the face.

The latest appalling Q3 numbers from industrial bellwether company Alcoa were proof enough that economic growth has hit a brick wall. Nevertheless, this week’s actions constitute the sort of response that should finally make a material difference to the perceived security of UK banks and to the gradual unfreezing of credit markets across the globe. The greatest dangers to successful investment remain fear and greed and the markets are so dominated by the former that all emphasis is on the downside risk rather than upside potential. The markets can fall further, but are now at the val...

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