Investors are continuing to pile into the equity markets, mopping up the increasing number of stocks which are now trading at substantial discounts. Those which have lost most ground - including Independent, Greencore, Smurfit, Waterford Wedgwood and Irish Life - offer the greatest potential returns in a steadier market.

With interest rates on the way down, the equity markets will increasingly become more attractive to investors seeking a return on their capital. Bank and building society deposit rates are already at historically low levels and are soon set to move even lower.

With investors looking at potential returns of less than 4 per cent from next year the equity market in the long term should yield a more substantial return.