Analysis

One step forward, half a step back. This is how we anticipate the rhythm the UK economy will be into 2010.

Equity markets in the second quarter bounced in response to the unprecedented policy actions around the globe.

The strong Wall Street rally between March and May reflected relief among investors that the official policy response to the crisis had prevented a repeat of the Great Depression.

Current climate of low interest rates beneficial as all but one of 60 funds in UK Smaller Companies peer group post gains over six months

What started as a valuation-driven rebound following the excessive de-rating of Asian equities in late 2008 has generated additional momentum on the back of more compelling evidence of an economic turnaround.

From where we sit at the half-way point of the year, it seems that to advocate an argument on whether the market is bullish or bearish is as finely balanced as it has been for a long time.

Thinking back to 20 years ago, there was a buzz of excitement in the investment world as investors seeking above-average returns ventured in a handful of exotic economies.

It has been a challenging year for investors in global mining and energy markets.

The perception is the European Central Bank has been an outstanding laggard in its policy responses, that it lacks a clear mandate, and has too many people (22) sitting on its governing board to be aggressive.

The market lows of early March were followed by a swift turnaround in risk appetite, fuelling a sharp rally in equity and credit markets in April and May, ahead of some profit taking in June.