In this regard the spectacular fall of Madrid 8

The evolution of the results of the companies concerned more and more markets. As the publication of the figures in the third quarter, which is currently in the United States, the anguish of operators grows. In the light of the information provided these days by many companies, investors reconsider their views on the severity and duration of the recession. They are more and more convinced that the credit crisis will lead to a slowdown in economic, while unfortunate, but limited in time, but on something much more serious.

European diving

Already penalized Tuesday by grim Outlook issued by several technological values, the New York Stock Exchange yesterday enhanced its withdrawal movement. As soon as the first trade, Wall Street has lost up to 4.55, before recover to about 3.5 to the closing of the places European, for finally unscrew 5.69 at the end. At the time, the latter, who had registered in the Red throughout the day, all completed almost at the bottom of the meeting. This is the case in Paris, where the index CAC 40 has closed on a decline of 5.10, thus falling below the bar of the 3,300 points. Clearly, the continuation of the relaxation on the credit market, which had fueled an early bounce in the markets of shares late last week, was not sufficient to mitigate the effect of bad forecasts of companies. The performance of the 3-month dollar Libor is yet relaxed 3,834-3,541 yesterday, while the Euribor was 4,968-4,936.

Analysts and managers are, admittedly, growing more convinced that the world economy is preparing for a prolonged and severe recession which person can escape. Even the emerging economies, which many had to compensate for the slowdown at work in developed countries, are beginning to show signs of weakness. In this regard, the spectacular fall of Madrid ( 8.16) owes much to the decision of the Argentina to nationalize its pension funds.

Plank of salvation

""We anticipate no possibility of rapid rebound of growth in other words "V" recovery" and expect no significant restart before 2010", confirms Alan Brown, Director of the management of Schroders. According him, the world economy will continue across twelve to eighteen months very difficult, which penalized as a result, many asset classes. Portfolio reallocations continues therefore to the benefit of investments deemed safe, in particular the currency market, where the dollar has continued his reappraisal over the euro movement, back to its levels of the end of 2006.

Only glimmer of hope, equity markets have always clearly advance the economic cycle. They should therefore receive their most low well before the growth rebound occurs. The question is now what due the results of the companies will be in low. Markets generally anticipate this phase with six months in advance. For the time being, the decline in stock prices may continue in a context still marked by volatility. Alan Brown nevertheless observed that the current valuations are already lot of bad news and that equity markets are dealt with already in multiple relatives of lowest observed for 20 years. However, "historically, Director of Schroders management, valuation levels equivalent to those seen today resulted on equity markets by actual performance annualized by 6 in the decade following".