The net exposure to shares of your portfolio is 43%. Our first priority has been to stabilise the portfolios after the recent poor performance. This has now been achieved. The current strong rally in the stockmarkets continued, but remains unsupported by fundamental factors - making us reluctant to commit your money to equities.

We hold options that will protect the portfolio against severe declines in the market.

The net exposure of your portfolio to shares is 59%. Investors globally have decided that they trust company managements more than they trust Governments. Therefore, they are putting their money into shares - causing stockmarkets to rise. In contrast, in the USA Government bond prices are falling. The 30-year Goverment Bond yield has broken its bull trend that started all the way back in 1987.

The net exposure of your portfolio to shares is 97%. For 2010, we expect Central Banks to continue providing cheap liquidity in order to stimulate their economies - but the recipients of this liquidity will use it to buy financial assets (such as shares) rather than risk it in the real economy. Therefore, stockmarkets should do better than the underlying economy would suggest.