The first half of 2008 presents a good opportunity to buy shares, according to Jeremy Tigue, spokesperson for F&C Investments.

Tigue said that although current market conditions are somewhat volatile, historically, bad patches in markets have often been the starting points for good investment returns. Reducing interest rates and rebuilding confidence in the banking system will help to restore share prices, he added.

Tigue continued: “The crucial difference between the current market turbulence and previous bear markets is that this time around, the equity market is peripheral to the main problem rather than central to it.

“This time around the problems are in banks and in credit markets as a result of poor lending decisions, poor risk controls and poor design of many credit products. Equities are suffering collateral damage, some of it very nasty, but they are not the source of the problem.”