And then there are those who would advise investors to give equity markets a miss altogether. One US "guru" who predicted the super bull markets of the 1980s, Mr Robert Prechter, is now predicting that markets are entering a bear phase.

In his just published book At The Crest Of The Tidal Wave - he explains his theory and observations on the stock market and the psychology that applies to investors. "One thing I have learned is that if the majority does not laugh at or dismiss as worthless my long-term market opinion it is wrong." He goes on: "if you have the courage to separate yourself from the herd because you suspect it might be stampeding over a cliff, the time to do it is before the herd reaches the cliff." You have been warned!