Analysis

Global equity markets appear to be in healthier shape.

On 6 March, the market realised if Citigroup could earn its way out of the capital hole created by caustic debt holdings, less troubled banks could also.

We believe 2010 will be another good year for corporate credit but we do not see the double-digit returns for UK investment grade corporates being repeated.

As its name suggests, the UK equity income sector provides exposure to companies that pay above-average dividends (the criteria for inclusion in the IMA UK equity income sector is a dividend yield of at least 110% of the FTSE All Share index yield).

Investor keenness in sector pushes prices up sharply but long-term case remains intact

Top five funds in IMA Strategic Bond sector all return above 4% over one year against an average of 23.1%

As we enter 2010, one of the greatest unknowns for UK investors is the outcome of the forthcoming election and the extent of the tightening policies thereafter.

With some justification, investors took an increasingly positive view of the prospects for most Asian markets last year.

Investors seem more than happy for the market to continue moving higher and the latest investor sentiment surveys indicate the bullishness among investors is now at levels not seen since 2007.

It is very hard to make any convincing predictions after such a turbulent, but ultimately very rewarding year in 2009.