Sage Advice Quarterly Market Review 3Q2008

The credit crisis plaguing the capital markets moved from severe to critical by the end of the third quarter and into the fourth quarter as investment markets essentially locked up following a string of unprecedented failures and near-failures within the global financial services sector. While the U.S. Government policy response has been aggressive and broad based, it has not yet been enough to restore confidence, stability or liquidity within the markets. Risk assets essentially entered a free fall in the early days of the fourth quarter as liquidity actions failed to unlock global inter-bank lending markets and mounting evidence of a global recession sent risk aversion to new heights.