Global equities returned 11.7% in the first quarter and the All-Share index 6.2%.

Back to back gains in the S&P500 in the first two months of the year have occurred in 24 of the last 66 years. The

average gain during those 24 years was 19.4%, with not a single down year.

The most positive region is the UK, with 56% of forecast changes in the last 4 weeks being upgrades. Despite the market rally, equities trade at only a little over 12 times 2012 earnings

Since 1982, there have been seven bear markets in bonds, each involving losses of 15-20% in US 30 year Treasuries. Not one of these bear markets has caused a bear market in equities; two have coincided with flat equity markets (in 1984 and 1994); and five have coincided with big equity gains.