The credit crisis might be nearing an end, according to chief investment officer for the Vanguard Group, George (Gus) Sauter.

"We've probably turned the corner," Mr. Sauter said yesterday. "There has been tremendous economic stimulus in the US."

That economic stimulus comes from the near $100 billion sent out by the US government to close to 130 million homes, around $600 per household, along with nearly doubling the limits on tax-free business expenses. The recent economic downturn has largely been blamed on the collapse of the sub-prime mortgage market, which has left many investors seeking more conservative investment opportunities.

While some areas in the world economy, such as the US, UK, Spain and Italy, are soft, according to Mr. Sauter, other areas including the Pacific Rim and Germany, are still strong.

Mr. Sauter recommends his clients to stick to a long-term investment plan, arguing that many investors become emotionally involved, which can lead to mistakes.

"We don't think investors can pick up on tops and bottoms. People tend to sell when the market goes up," said Mr. Sauter. "You have to be close to the inflection point."

The Vanguard Group, founded in 1975, controls $1.4 trillion in assets making it one of the world's largest investment management companies.

Mr. Sauter spoke to many of his clients yesterday at an annual conference held by Vanguard for its clients on the Island.

The company has relationships with more than 40 clients in the Island, including banks and insurance companies, with local business totalling around $1 billion of Vanguard's interests.

"We're very committed to the (Bermudian) marketplace," said Tom Swartzendruber, Vanguard sales executive.