Four Part Harmony

This is Doug Tengdin from Charter Trust with the Global Market Update for Wednesday, October 15th, 2008. So what’s needed to fix the banking system?

Many point to a four-part solution: keep plenty of cash in the system, recapitalize major banks, end the deleveraging, and move from to policies that take the punch bowl away when the party gets hot.
So how are we doing? Liquidity? Check. The Fed has already pushed hundreds of billions into the system. Capital? Check again. The Bank of England and Paulson’s rescue fund are finding banks to support as we speak. Deleveraging? Working on it. The other $450 billion in the plan should help, but the market’s plunge has made many investors leery of risk, and leverage is always risky. Policies? Too soon to tell. That part is still in process.

So given the incomplete picture, it should come as no surprise that the markets are choppy. No one can pick a market bottom perfectly, but the volatility and negativity that we’re seeing is often typical of market bottoms. Hang on-we’re still in for quite a ride.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

direct: 603-252-6509
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By | 2014-09-04T13:58:31+00:00 October 15th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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