Good times for investors as markets continue to recover

The UK markets have enjoyed a sustained rally since they recoiled in May. The FTSE All-Share has been driven by a number of factors: rising company profits, low volatility, sustainable economic growth and under control headline inflation, given energy prices have fallen back. The market has also been sensing the top of the interest rate cycle and is relatively optimistic. Add in renewed mergers and acquisitions activity, and these are good times for investors. Moving forward, for the final quarter of 2006, investors should be cautiously optimistic on UK equities versus the bond market...