Sage Advice Quarterly Market Review 4Q1998

The financial markets have taken a wild ride since the Russian debt default and ruble devaluation in mid-August, leaving investors battered and bruised but in a more hopeful condition in early November. Indeed, it is hard to find anyone who has not been affected by the financial turmoil in recent months. Individuals had seen their 1998 capital gains virtually evaporate before October’s strong stock market rally. Bank balance sheets have been bloodied by emerging market debt and hedge fund exposure. Investment firms have suffered a severe drop in revenue-producing underwriting activity. And, until recently, all but the top-tier borrowers have been shut out of the capital markets. The usually nonplussed Fed chairman himself admitted that he’s never seen anything like this before