It has been a couple of months since the Lehman Brothers and the subsequent fall out. Over the last few months it seems that things in the financial markets have stabilised and because of global government actions we shouldn't see too many more major financial institutions collapsing. I'm sure some firms will get into trouble but for now I don't think another Lehman's will happen - particularly as Citi was rescued.

Sadly the downturn in the wider economy is still in full force and likely to get worse before it gets better. Nevertheless, with interest rate cuts, falling prices, government fiscal stimuli and the early indications of stability in the financial markets could we be reaching a bottom?

Well it seems possible that we might be reaching the bottom in financial markets. Equity prices seem to be very undervalued and presenting great opportunities to those with capital to invest.

Sadly the real economy lags the stock market and will continue to weaken over the next six months before reaching anything like a bottom. In countries like the UK the bottom is likely to take much longer.

As the real economy falters this will have a negative impact upon financial markets once more, limiting the extent of the rebound, and keeping us bouncing along the bottom for some time yet.

Being full of seasonal joy I am optimistic that this is the light at the end of the tunnel that we've all been looking for...I just hope that that light isn't a train coming in the opposite direction.