The bulls will not be going home yet

Last year provided another year of strong gains for the UK equity market, with rising company profit...

Last year provided another year of strong gains for the UK equity market, with rising company profitability, undemanding valuations and a boom in corporate activity all pushing the market higher. The positive risk appetite of investors was largely maintained despite rising global interest rates, surging energy prices and geo-political instability. Many commentators speak of the same again for 2006 and to a certain extent, we agree. The UK equity market should continue to make progress this year. Global liquidity is healthy, despite higher US interest rates and the strong petro-dollar, m...