The worst of the global sell-off is over and equity markets are on the mend, according to analysts at Lehman Brothers who forecast a 26% upside gain to global equities before the end of the year.

After a study of several slump periods since the 1940’s, Ian Scott, Lehman’s global equity strategist, said current low valuations and the markets’ significant correction of 15% since last week support his conviction that a trough has been reached.